The London Pensions Fund Authority (LPFA), one of the largest Local Government Pension Schemes in the UK, has partnered with private equity firm Adveq to make its first direct co-investment with growth capital investor Next Wave Partners in Secured Mail.
The company founded in 2006, specialises in bulk mail and e-commerce packet delivery. The company has grown rapidly and, since Next Wave’s first investment in 2011, has delivered sales growth of 65 per cent. Its clients include Amazon, Domino’s Pizza and British Gas owner Centrica.
Alex Gracian, CIO of the LPFA, said, “Part of the investments strategy at the LPFA is to source cost effective co-investment opportunities that will add value to the fund. Working with Adveq we were able to achieve this, we are delighted to be supporting the UK SME sector though this investment.”
Tim Creed, managing director at Adveq, added, “Next Wave specialises in transformational growth investments in the SME market and has established a strong reputation for successfully growing companies. We are delighted to be investing in Secured Mail’s further growth and to bring our investors like the LPFA into such exciting opportunities”.
The LPFA administers a £4.6bn pension fund and last year named private equity veteran Edi Truell as its chairman. Having previously operated within private equity as a fund manager – as founder and former CEO of UK mid-market private equity firm Duke Street – he recently said he is eager to work with GPs in a more “collaborative” way.
“Unless you can put up £30m or £50m for a particular deal, and effectively assess the co-investment opportunity in good time, then it is not going to be something that your GPs will feel they can bring to you,” he said.
Copyright © 2013 AltAssets