CBPE Capital LLP (“CBPE”), is pleased to announce the successful exit of its investment in Xafinity, a leading UK corporate pensions consultancy, via a main market listing on the London Stock Exchange.
Due to high investor demand, CBPE will sell all of its shares generating a return of 4.3x invested capital (with an IRR of 65%). The IPO has valued Xafinity at an Enterprise value of £220.3m. The market capitalisation on admission will be £190.3m.
CBPE acquired Xafinity out of Advent International backed Equiniti Group in February 2013. Xafinity is a market leader in providing pension compliance and advisory services to trustees and sponsors of UK corporate pension schemes. The group has long-standing relationships with over 550 pension schemes, including large (multi-billion) schemes, and has more than 400 employees, with offices in Reading, Leeds, Stirling, Belfast, London and Manchester.
Under CBPE’s ownership, the company has made significant investment into technology and infrastructure and has successfully established itself as a true challenger to the ‘big 3’ in the actuarial sector. As part of the separation from the previous parent, the business established a new headquarters and migrated its back office to new systems. The company’s investment in technology focused on increasing the quality and efficiency of ongoing compliance services and developing new ‘de-risking’ services to help clients meet the challenges of growing defined benefit pension liabilities. In addition, the management team has been broadened and deepened, such that today Xafinity has an experienced, ambitious and highly regarded team who are well placed to lead the company in the future.
Xafinity’s IPO has received considerable support from institutional investors. As a public company, Xafinity expects to participate in the future consolidation of the market, and capitalise on the on-going regulatory changes in the pensions sector which results in increased demand for market leading, innovative actuarial advice and services.
Ben Bramhall, Co-CEO of Xafinity commented:
“We would like to thank CBPE Capital for its key role in building the business over the last four years, providing invaluable support and investment which has contributed to Xafinity’s success as a stand-alone business. The IPO is the logical next step in our strategy, enhancing our public profile and status with existing and potential clients and providing access to the capital markets to aid future growth if required”.
Ian Moore, Partner, CBPE commented:
“We are proud of the success of Xafinity. This result is testament to the ambition and hard work of all the staff of Xafinity. We have had an excellent working relationship throughout our investment and together we have overseen strong growth in Xafinity’s revenue and profitability. Xafinity has a young and ambitious management team and we believe that this IPO provides them with the platform to become the dominant ‘mid-market’ operator for defined benefits pensions consulting services”.
CBPE’s investment was led by Ian Moore and Richard Thompson and it continues CBPE’s strong track record of investing in the business and financial services sector. Current CBPE investments in business and financial services include JTC Group and Compre.
Zeus Capital was financial adviser and sole bookrunner on the transaction. Deloitte acted as sponsor. Reed Smith acted as legal adviser.