Graphite Capital exits Random42 in trade sale

The London-based sponsor led the buyout of Random42 from Vespa Capital in 2017 with Crescent Capital Group and HSBC providing a debt financing package for the transaction. Graphite invested via Graphite Capital Partners VIII, which closed on GBP 475m in 2013. The vehicle targeted buyouts of UK-based businesses valued in the GBP 40m-GBP 150m range, according to Unquote Data.

Graphite helped the company expand the sales and marketing functions and broaden its client base, while investing in and helping optimise key operational functions to provide greater scalability and scientific capability. This culminated in the launch of its digital asset library, featuring 25,000 unique 3D files, in 2021, according to a press release from Graphite.

Lockwood Group, a Connecticut-based medical communications agency backed by Ares Management Corporation, will continue to guide the company with an emphasis on growth, extending Random42's footprint to the US, according to a press release from Lockwood.

Graphite is investing its GBP 500m-plus fund Graphite Capital Partners IX. The fund held a final close in July 2018 and it plans to make 8-12 deals, according to Unquote Data. It focuses on UK mid-market companies with enterprise values of GBP 30m-GBP 150m. It also considers backing smaller companies with expansion potential. The most recent realised investments include U-POL, the manufacturer and distributor of automotive repair and refinishing products, and City & County Healthcare Group, the UK's largest domiciliary care provider, according to a press release from Graphite.

Company
Founded in 1992 and based in London, Random42 is a leading scientific communication studio specialising in medical animation and education, virtual reality, augmented and mixed reality, interactive and visually engaging solutions for global pharmaceutical and biotechnology companies. Its client range includes big pharmaceutical companies worldwide, including AstraZeneca, BMS, GSK, Merck, Novartis, Pfizer and Roche down to small innovative biotechs. It is one of the largest global medical animation producers with over 260 awards for high-quality medical animation and scientific storytelling. The company produced seven animations for Covid-19 vaccines and therapeutic treatments, and its Covid-19 animation received more than two million views on YouTube.

People
Graphite Capital − Humphrey Baker (senior partner); Alex Hearne (investment executive).
Random42 − Ben Ramsbottom (CEO); Andy Kay (CFO).
Lockwood Group − Matt Schecter (founder & CEO); Alan Banner (president & COO).

Advisers
Vendor − Houlihan Lokey − Larry DeAngelo, Mark Martin, Kevin Rogstad (corporate finance); Travers Smith − Ian Keefe, Jessica Kolhorn (legal).

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