NVM makes first deal from maiden LP-backed fund with Dale MBO

The transaction is the first investment made by NVM's maiden institutionally backed fund, NVM Private Equity Vintage III.

Unquote has learned that the fund has held a first close and has a target of £150m, though the GP declined to comment on the commitments raised to date. It is understood the vehicle will typically look to make investments of up to £15m in management buyouts, and is aiming to hold a second close by the middle of 2018.

NVM is the latest in a line of VCT fund managers to have raised LP-backed vehicles after the UK government introduced laws in 2015 that prohibited VCTs from making buyout investments.

Under its new ownership model, Dale will look to make bolt-on acquisitions and will expand its product range into new segments, including energy storage.

As part of the deal, NVM investment partner James Arrowsmith will take a seat on the Dale board in the role of non-executive director.

Company
Headquartered in Scarborough and founded in 1935, Dale provides emergency power supplies and standby power systems for companies operating in the telecommunications, healthcare, oil & gas and utilities sectors. Its clients include NEC, Siemens, National Grid, ISG, Mitie, Northern Power Grid, Vodafone and Thames Water. The company has a headcount of 270.

People
NVM Private Equity – James Arrowsmith, Mauro Biagioni (investment partners).
Dale Power Solutions – Tim Wilkins (CEO); Denzil Lee (chairperson).

Advisers
Equity – Square One Law, James Bryce, Charlie Fielding (legal); PwC, Kevin Barnard (financial due diligence); CIL Management Consultants, Jon Whiteman (commercial due diligence); Intuitus, Iain Mackay (IT due diligence); Continuum, Steve Wycherley (management due diligence).
Vendor – Clearwater International, Phil Burns, Karen Edwards (corporate finance); Gateley, Beth Mather, Matthew Flint (legal).

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• Topics
• Buyouts
• UK / Ireland
• Industrials
• United Kingdom
• NVM Private Equity
• PwC
• Clearwater
• Gateley