Risk Capital Partners leads GAK management buyout

Co-managing directors Max McKellar and Ian Stephens took a stake alongside the GP. Founder Gary Marshall will keep a small holding in GAK, but will relinquish day-to-day management, although he will continue to advise the management team in a consulting capacity.

The transaction is expected to allow the business to expand its online operations and widen its product range, including by exploring new markets.

Risk Capital is the investment vehicle of leisure entrepreneur Luke Johnson, who has built up a portfolio including several Brighton-based assets. Johnson has joined the GAK board as chair.

Company
Brighton-based GAK was founded in 1992 by Gary Marshall, and is a musical instrument retailer, supplying a wide range of guitars, amps, drums, keyboards and music production software.

GAK expects to post a GBP 35m turnover and its best-ever profits this year, a source with close links to the business told Sky News. Less than a third of revenues come from the company's bricks-and-mortar store in Brighton, with most sales generated online.

People
Risk Capital Partners – Luke Johnson (founder).

Advisers
Vendors, company – FRP (M&A); Coffin Mew (legal); Watson Associates (tax).
Equity – RSM (financial due diligence); Irwin Mitchell (legal).

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• Buyouts
• UK / Ireland
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• Risk Capital Partners