BGF exits first ever investment as Bain backs Benefex

Bain acquired a minority stake in the business, allowing BGF to exit its investment. The deal is subject to regulatory approval and is expected to complete in Q4 this year.

BGF acquired a minority stake in Benefex, a UK-based online rewards and benefits provider, for £4.2m in a growth capital transaction in 2011. This marked the investor's first ever deal. Overall, BGF invested £5.5m in the business over the course of the holding period.

The growth strategy for the company was mainly achieved through investment in operations, infrastructure and people, according to BGF.

Bain stated it was impressed by the team and the company's product, and that the deal was an important further step in its investment strategy in the HR software space. In October last year, the GP agreed to acquire the UK mid-market and server message block (SMB) divisions of payroll and HR software provider NGA Human Resources.

Company
Benefex is a provider of online rewards and benefits via its OneHub platform. It enables large organisations to tailor their rewards and provide benefit packages to individual employees, communicate effectively online with staff, and outsource administration and support for their schemes.

Headquartered in Southampton, the company was expecting a turnover of approximately £10m in 2012, according to Unquote Data. Based on the most recent available public information, the business posted a £16m turnover in the 18 months to July 2017, with EBITDA of £758,000 over the same period.

People
Vendor – Paul Oldham (director).
Equity – Christophe Jacobs (managing director).

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• Topics
• Exits
• Expansion
• Support services
• UK / Ireland
• United Kingdom
• BGF (Business Growth Fund)
• Bain Capital