RJD sells supply teacher recruiter for 3x

In the first exit from Fund II, the lower mid-market investor has sold Teaching Personnel to Graphite Capital for £45m.

RJD Capital Partners has exited Teaching Personnel for a 3x multiple on its invested capital. It sold the UK-based business to Graphite Capital for £45 million (€54 million; $70 million) in a secondary buyout.

This is the first exit from RJD’s second fund, which closed on £180 million in July 2007. RJD acquired Teaching Personnel, which provides supply teachers and support staff for schools, in a £24 million buyout in 2007.

RJD’s Fund II is now 45 percent invested, said investment director Frank Bulman.

Graphite Capital’s buyout of Teaching Personnel from RJD was partly financed using bank debt from Clydesdale Bank Corporate and Structured Finance, “with a little more equity than debt, but not far off”, according to Graphite senior partner Mark Tilbury, who did not disclose exact figures.

Tilbury said that Graphite is considering using Teaching Personnel as a buy-and-build platform, something the firm has done before in the recruitment sector with recruitment outsourcer Alexander Mann Solutions, which it acquired in 2007.

In other news, Graphite is one of several private equity firms which has asked its LPs for an investment period extension on its fifth fund in order to more fully invest its capital. Tilbury said it was normal for a Graphite fund to have a 10 year commitment period and then a two year extension: “Typically we are money multiple-driven and we work hard to find value for our investors over a period of time and if it requires a bit more time we request an extra couple of years to deliver it.”