Connection Capital, the specialist private client alternative investment business, has completed a debt and minority equity investment in IFF Research. IFF is an award-winning, full-service social and market research and insights agency, which sits at the summit of UK Public Policy and Social Research.
- Flexible debt facility enables the company to accelerate growth and cement its leadership position in UK Public Policy and Social Research
IFF operates across eight major sectors and offers a full suite of research services including data collection, data analysis, and reporting, across quantitative, online and qualitive fieldwork. The findings of IFF’s work inform strategic decision-making in government and public bodies to drive improved outcomes, better policy shaping, clear communications, and higher quality investment decisions.
The funding facilitates the buy-out and retirement of an existing shareholder and allows remaining management to partially de-risk. A key feature of this type of funding structure is that management can enhance its equity stake relative to an equity funded management buyout, so they benefit from a greater share of the value they create over the investment period.
Connection Capital has provided a non-amortising debt facility to enable IFF to accelerate growth and cement its leadership position in UK Public Policy and Social Research. IFF will also be able to leverage Connection Capital’s experience of working with SMEs to help them successfully scale over the investment period. Additionally, Connection Capital is able to offer IFF its M&A expertise and access to further capital to support the company with value accretive acquisitions over the investment period.
Mike Coupland, Investment Director at Connection Capital, commented: :
“IFF has a formidable reputation within the market and is led by a very capable management team with a proven track record of achieving financial, operational, and acquisitive growth over the last four years. We were able to construct a funding package which allows the shareholders to meet all of their objectives, realise some value today and secure a supportive partner who can provide professional investor expertise and further capital for acquisitions.
The resilient nature of IFF’s business model makes it an attractive private debt investment for our HNW/UHNW clients against a backdrop of public market volatility.”
Jan Shury, Managing Director at IFF Research, said:
“We’re delighted to have formed a partnership with Connection Capital. We’ve made tremendous strides in our business over the last few years, and are very excited for our future. That future looks all the brighter now we have the team at Connection on board. We spoke to many potential partners in our search for one whom we believe could truly make a difference in our next phase of growth, who got us as people and who shared our people-centric culture. The Connection team stood out from the start, in their enthusiasm, the speed with which they understood our business and their palpable belief in collaborative working.”
About Connection Capital
Connection Capital LLP is a specialist syndicator of investment funds from private professional investors into direct private equity, private debt and commercial property deals, as well as alternative asset funds. It currently has some £450 million under management across a diverse portfolio. Connection Capital provides a specialist managed service to help professional clients build up their own alternative asset portfolios. Private investors self-select which opportunities they want to take a stake in. Opportunities are identified and negotiated by Connection Capital, which also carries out all due diligence and manages the investment from completion through to exit, on its clients’ behalf. Connection Capital is authorised and regulated by the Financial Conduct Authority.
Buzzacott Corporate Finance acted as lead adviser on behalf of the shareholders. Gateley Plc provided legal advice to Connection Capital on the transaction and Kreston Reeves provided Financial Due Diligence. Lewis Silkin provided legal advice to IFF.
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