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News


ESO Capital Invest in Facilities Management Provider Arcus FM - 2020-02-01

ESO Capital Partners UK LLP (“ESO”), the provider of flexible capital solutions to European SME’s, announces today it has provided growth capital to market-leading tech-enabled integrated facilities management provider, Arcus FM (‘Arcus’ or ‘the Company’). The deal was structured as the financing of a management buyout, which also saw ESO take a significant minority equity stake in the business. David Steel, Director at ESO, will also join the Board of the Company.

Today’s investment will enable the management team of Arcus to accelerate its ambitious expansion plans, through ESO’s financial backing and ongoing equity ownership, and their hands-on support and expertise in working with fast-growing businesses.

Arcus was formed in 2009 as part of a joint venture with Sainsbury's. It is a leading UK based facilities management (‘FM’) company providing bespoke FM services and technology-led solutions for its clients in the retail, logistics and public sector. The Company has experienced significant organic growth since inception, supported by its close relationship with Sainsbury’s, which continues to develop.

The existing Arcus management team will remain majority equity shareholders, led by CEO Chris Green.

This is the second transaction completed from ESO’s latest institutional special opportunities fund, following the investment in marine transportation provider Oslo Tankers in 2019. The Arcus deal structure is typical of the types of customised transactions that ESO focuses on, providing both flexible capital and dedicated portfolio company support for European SMEs.

Chris Green, CEO of Arcus FM, commented: “This is a very exciting time for Arcus. Our Company is growing rapidly so it was important for us to join forces with an institutional investor who shares our long-term vision, and this partnership will allow us to accelerate our expansion within the facilities management industry.”

David Steel, Director, ESO Capital, commented: “At over £150 million of revenues and growing at an impressive rate, Arcus is already a very successful business led by an experienced management team. We were particularly impressed with the Arcus technology, especially the Helix integration platform, which has been specially developed in-house over a number of years. Given our experience in supporting high-growth companies, we see considerable opportunity for ESO Capital to support the management team as it looks to build its market share in this very interesting sector. Our investment in Arcus, which sits senior in the capital structure, is typical of the type of investment that ESO Capital is pursuing in the UK and northern European markets.”

ESO’s deal team was led by David Steel (Director) and Stuart Hamilton (Associate). ESO’s legal advisor was James Cross at K&L Gates. Grant Thornton provided buy-side financial advice to ESO (Usman Malik) in addition to financial, commercial and tax due diligence (Carl Parker, Ven Balakrishnan, and Lucy Orhnial). BDO Corporate Finance (Satvir Bungar) advised Arcus management shareholders on the transaction and identified ESO Capital early on as a strong investor partner for Arcus.

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For further information on the Arcus deal

ESO Capital Partners
David Steel
ds@esocapital.com
+44 203 642 2600

Notes to Editors

About Arcus FM:
Arcus FM was formed in 2009 as part of a joint venture with Sainsbury's. The UK based facilities management company provides bespoke FM services and technology-led solutions for its clients in the retail, logistics and the public sector.
Today, with over £150m of long-term contracted revenues which are rapidly growing, Arcus is a well-established top 20 UK national integrated FM provider.
To discover more, visit: www.arcusfm.com

About ESO Capital:
ESO Capital (www.esocapital.com) is a London headquartered multi-strategy investment firm, with offices in Frankfurt and Luxemburg, focused on providing senior capital solutions to European small- and medium-sized enterprises. With over 75 deals completed and more than €1.1 billion of funds raised to date, the ESO Capital team have the expertise and flexibility to invest up to €40 million in any given transaction, across the capital structure, from senior debt to equity. The team works closely with business owners and management teams to structure innovative, bespoke financing solutions and offer enhanced portfolio company support.

Turbine Efficiency Group bolts on Gas Turbine Applications - 2018-12-07

Turbine Efficiency Group is delighted to announce the acquisition of Gas Turbine Applications Inc (“GTA”). Turbine Efficiency, backed by Core Capital Partners LLP which was acquired by ESO Capital in May 2018, is a leading independent service provider for industrial gas turbines.

GTA is a highly-respected after-market services provider for Solar® Turbines products, specialising in the Saturn and Centaur engines. The business serves a longstanding customer base operating from facilities strategically located in Oklahoma, USA.

The enlarged group will leverage its combined capabilities to service new and existing customers from overhaul facilities in the UK and US, and regional offices in Aberdeen and Dubai.

Chris Turner, CEO of Turbine Efficiency, commented: “The acquisition of GTA represents a key strategic development in the ambitious expansion plans for Turbine Efficiency, bringing with it the extension of our global footprint and the Turbine Efficiency brand into the vast Americas market. We welcome our new colleagues at GTA into the Turbine Efficiency family and look forward to working with them as we take both companies forward together”

Matthew Hewlett, ESO Capital, added “Since our investment in 2016, Turbine Efficiency has more than doubled revenue organically and expanded into new strategic territories. This acquisition further enhances the geographical reach and broadens service capabilities, which will enable the Group to accelerate growth and serve our customers even better.”

 

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For further information, please contact:
ESO Capital Partners

All media enquires:
Tingting Peng
tp@esocapital.com
D: +44 203 642 2600

For more information on TEG:
Matthew Hewlett
mh@esocapital.com
M: +44 (0)770 9197 397

ESO are actively seeking new investment opportunities. If you would like a meeting to discuss our approach or a specific opportunity:
James Smallridge
jms@esocapital.com
M: +44 (0)7971 475 582

 

Notes for Editors
About Turbine Efficiency
Founded in 2001 as an Independent Service Provider on the full range of Siemens industrial gas turbines from 1 – 15MW. Turbine Efficiency provides a world-class service for all maintenance, repair, overhaul and testing of your gas turbine and package. The group operates from a state-of-the-art overhaul facility in Lincoln, UK with offices in Aberdeen, Dubai & Houston, and resident Field Service Engineers in several key European locations. In 2016 TEL was acquired by Core Capital Partners, a mid-market private equity investor supporting high-growth UK companies.

About Gas Turbine Applications (“GTA”)
Founded in 1984, GTA is an independent service provider specialising in the Saturn and Centaur industrial gas turbines (Solar® Turbines products). GTA provides overhaul, repair and testing services for a longstanding customer base, primarily operating within the upstream and midstream sector, from its facility in Calera, OK.


About ESO Capital
ESO Capital is a London-based investment firm providing hybrid private-capital solutions to European small and medium-sized enterprises (SMEs). ESO’s acquisition of Core Capital is subject to regulatory approval and will combine its debt capabilities with Core Capital’s equity expertise.
www.esocapital.com

ESO Capital supports MBO of Pyroguard - 2018-09-28

ESO Capital Partners UK LLP (“ESO”), the provider of flexible capital solutions to small and medium-sized companies, announces today that it has supported the financing of a management buyout of north-west England headquartered Pyroguard.

Over the last four years, Pyroguard, a market leading manufacturer of fire-resistant architectural glass, has experienced significant organic growth, which is expected to continue. This new investment will allow the management team of Pyroguard to accelerate their expansion plans in the UK and Europe.

The existing Pyroguard management team will become majority equity shareholders, led by CEO Neil Tilsley with Nick Brayshaw continuing in his role as Chairman. David Steel, Director at ESO, joins the Pyroguard Board.


This is the first transaction completed by ESO since acquiring Core Capital in May 2018, and is structured as a senior-secured loan note with additional equity participation. The deal structure is typical of the highly flexible deals that ESO focuses on. By combining ESO’s credit expertise with Core Capital’s extensive sourcing capabilities, the enlarged ESO team offers bespoke capital structure solutions for European SMEs, with enhanced portfolio company support, solving a financing gap in the market.


Pyroguard’s prior backers were Dunedin and NVM.


Neil Tilsley, CEO of Pyroguard, commented: “I am delighted that a forward thinking and proactive investor such as ESO has seen the potential of investing in the future success of Pyroguard. Dunedin and NVM have been highly supportive investors for several years and have played a significant role in making Pyroguard the successful high growth business it is today. Bringing in a new external institutional investor like ESO, who has supported rapid growth across a range of businesses before, will bring not only a fresh perspective but also help us to accelerate our ambitious growth plans. Pyroguard has an exciting future ahead as a result of this new partnership.”


David Steel, Director, ESO: “Pyroguard is already a very successful business, with an experienced management team, a strong presence in a highly technical sector with significant barriers to entry. Given our experience in working with high-growth companies, we see considerable opportunity for ESO Capital to support the management team of Pyroguard as it looks to build its market share in this very interesting sector.”


Walid Fakhry, Founding Partner, ESO: “We are pleased to be announcing our first deal since ESO acquired Core Capital earlier this year. Our investment in Pyroguard, which sits senior in the capital structure, perfectly demonstrates our strong, flexible financing capabilities and support for ambitious growth companies.”


ESO was advised by K&L Gates. Pyroguard and its shareholders were advised by Clearwater International. Financial due diligence was conducted by PwC and Sentio Insight with tax advice provided by BDO, and commercial due diligence completed by PMSI.


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For further information


ESO Capital Partners
Tingting Peng
+44 203 642 2600


Notes to Editors

About Pyroguard:

Based in the UK, with locations in France, Netherlands and Spain, Pyroguard is one of the world’s leading independent producers of fire safety glass.

Supporting architects, specifiers and contractors to meet all of their fire safety glazing requirements from a single source, the company offers one of the widest product ranges available. With high-performance products tailored to customers’ precise specifications, beautiful spaces for work and leisure can be created, combining safety and aesthetics without the need for compromise.
To discover more, visit www.pyroguard.eu

 

About ESO Capital:
ESO Capital is a London-based investment firm providing hybrid private-capital solutions to European small and medium-sized enterprises (SMEs). ESO’s acquisition of Core Capital is subject to regulatory approval and will combine its debt capabilities with Core Capital’s equity expertise.

With over 75 deals completed and more than €1.1 billion of funds raised to date, the enlarged ESO team has the expertise and flexibility to invest up to €40 million in any given transaction, across the capital structure, from senior debt to equity. The team works closely with business owners and management teams to structure innovative, bespoke financing solutions and offer enhanced portfolio company support.
www.esocapital.com

ESO expands into Germany with Frankfurt office - 2018-05-24

ESO capital logo

London and Frankfurt: ESO Capital Partners UK LLP, (“ESO Capital” or “ESO”), the provider of hybrid capital solutions to small and medium-sized companies (SMEs), announces today the opening of a Frankfurt office, signalling its commitment to German-speaking Europe.

ESO will be able to better serve SMEs across continental Europe from its new base, with a particular focus on Germany, Austria and Switzerland. The office will be led by Christian Fritsch, partner at ESO Capital, and will initially comprise a team of four investment professionals.

The expansion into Germany follows the recent acquisition by ESO of Core Capital, the UK lower mid-market private equity fund. The enlarged firm invests up to €40mn at a time in complex transactions. It deploys funds across the capital structure, providing hybrid capital solutions ranging from senior debt to equity. The team works closely with business owners and management teams to structure innovative, bespoke financing solutions and offer enhanced portfolio company support.

There are estimated to be more than 3.7 million SME businesses (defined as those with annual turnover below €500m) in Germany, representing the vast majority of all enterprises in the country, and underpinning the region’s strong economic performance. Demand among German SMEs for debt has grown every year since 2011 and is expected to continue.

ESO has extensive experience of investing in Germany. Its current investments include 21Sportsgroup, a sport-related e-commerce business, and Loancos, the largest independent loan servicer for performing and non-performing loans in Germany.

 

Christian Fritsch, Partner at ESO Capital and head of the Frankfurt office, said:
“I am delighted to announce the opening of ESO’s first office outside the UK in Frankfurt. Germany has a rich heritage of privately-owned small and medium-sized companies; by building a base in Frankfurt we will be well placed to support them and meet their growing appetite for credit, particularly given the changing shape of the local traditional lending market.”

 

Alex Schmid, CEO of ESO Capital, said:
“The opening of our new office is another significant milestone for the firm, following the acquisition of Core Capital this month. I am confident that our innovative approach to delivering financing solutions for European SMEs will prove equally attractive in Germany and German-speaking Europe and we look forward to continuing to serve this market through our new presence on the ground.”


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For further information:
Greenbrook Communications
Matthieu Roussellier, Matthew Goodman, Clare Glynn
P: +44 207 952 2000
E: eso@greenbrookpr.com


About ESO Capital
ESO Capital is a London-based investment firm providing hybrid private-capital solutions to European small and medium-sized enterprises (SMEs). ESO Capital’s acquisition of Core Capital is subject to regulatory approval and will combine its debt capabilities with Core Capital’s equity expertise. With over 75 deals completed and more than €1.1 billion of funds raised to date, the enlarged ESO Capital team will have the expertise and flexibility to invest up to €40 million in any given transaction, across the capital structure, from senior debt to equity. The team works closely with business owners and management teams to structure innovative, bespoke financing solutions and offer enhanced portfolio company support.

Core Capital invest in Alpine Fire - 2018-05-15

Core Capital Partners LLP (“Core”), the UK lower mid-market private equity fund, announces today that it has become the first institutional investor in Alpine Fire Engineers (“Alpine”). Alpine is a market leading designer, project manager, service and maintenance provider of active fire suppression systems. This new investment will allow Alpine to accelerate its expansion plans.

Alpine has experienced significant growth over the last five years, which is expected to continue both organically, as well as through select bolt-on acquisitions. The investment from Core will support the development of Alpine’s service and maintenance offering in addition to investment in IT systems.

The existing Alpine management team will remain significant shareholders, along with new CEO Steven Nanda, who joins after seven years as Managing Director of Industrial Services at SPIE UK where he held responsibility for their UK M&A strategy.  David Steel, Partner at Core, also joins the Alpine Board.

Last week, ESO Capital, the specialist investment firm that provides hybrid capital solutions to European SME’s, announced its acquisition of Core Capital. By combining ESO Capital’s deep debt capabilities with Core Capital’s extensive equity expertise, the enlarged business will offer even more flexible capital structure solutions for lower and middle market European companies, with enhanced portfolio support.

Steven Nanda, CEO of Alpine Fire, commented: “I am delighted to have joined Alpine as CEO. The employees, customers and sector expertise have built a fantastic platform for the business to continue to succeed. Bringing in an external institutional investor who has supported rapid growth across a range of businesses will bring a new perspective and help to accelerate our development.”

David Steel, Partner, Core Capital: Alpine is already a very successful business, with a high-quality management team and a strong presence with its loyal customer base. Given our experience in supporting high-growth companies, we see considerable opportunity for Core Capital to work with Alpine as it looks to build its market share in this very interesting sector. Our investment in Alpine, which is at the top of the capital structure, is typical of the type of investment that the enlarged ESO Capital group will be pursuing in the future.”

Core’s legal advisor was Andrew Masraf at Pinsent Masons, with Management advised by JMW and Paul Hastings.  Hurst Corporate Finance advised Alpine on the transaction. Financial due diligence was conducted by Grant Thornton and commercial due diligence was completed by Teneo (previously Credo Consulting). 

 

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For investment enquires

David Steel (Core Capital)

+44 203 7949 750

 

For further information

Greenbrook Communications

+44 207 952 2000

Matthieu Roussellier, Matthew Goodman, Clare Glynn

 

Notes to Editors

 

About Alpine Fire Engineers:

Alpine Fire Engineers Ltd were established in 1992 and are a 1048 – 1 Level 4 Loss Prevention Standard approved contractor, the highest level attainable from the Loss Prevention Certification Board. Alpine operate nationally and specialise in the mitigation of client risk through the design, project management and maintenance of fire suppression systems.

 

About ESO Capital:

ESO Capital is a London-based investment firm providing hybrid private-capital solutions to European small and medium-sized enterprises (SMEs). ESO Capital’s acquisition of Core Capital is subject to regulatory approval and will combine its debt capabilities with Core Capital’s equity expertise. With over 75 deals completed and more than €1.1 billion of funds raised to date, the enlarged ESO Capital team will have the expertise and flexibility to invest up to €40 million in any given transaction, across the capital structure, from senior debt to equity. The team works closely with business owners and management teams to structure innovative, bespoke financing solutions and offer enhanced portfolio company support.