Charterhouse Capital Partners has agreed to sell SLR Consulting, a UK-based environmental and advisory business, to a private equity fund managed by Ares Management.
The deal generates a 4x money multiple for Charterhouse, according to a source close to the situation.
With the support of new owner Ares, the company will seize growth opportunities amid the increasing focus on sustainability and the acceleration toward climate transitions, according to a press release.
Charterhouse acquired a majority stake in the business in 2018 from 3i investing through Charterhouse Capital Partners X, which held a final close in November 2016 on EUR 2.3bn. The vehicle targets companies valued between EUR 300m-EUR 4bn, according to Unquote Data.
Under Charterhouse’s ownership, SLR generated double-digit growth and increased its EBITDA. It completed 15 add-on acquisitions in the period, including the purchase of UK-based Vectos, a transport and mobility planning consultancy, and Corporate Citizenship, a sustainability consultancy, in April 2021, according to the press release. SLR is expected to generate revenues of around GBP 250m in 2022, according to the source.
Ares, an alternative investment manager operating in the credit, private equity and real estate markets, has USD 325bn of AUM across its strategies and asset classes, with USD 33.6bn in private equity, a spokesperson for Ares said.
This investment is not Ares’ first private equity deal, the spokesperson added.
Charterhouse declined to comment.
Founded in 1994 with 2,300 employees, SLR is headquartered in the UK. The company delivers advice on ESG and sustainability challenges across sectors including industrials, mining and minerals, manufacturing, energy and power. It has offices across the UK, Europe, US, Canada, Latin America, Asia-Pacific and Africa.
Charterhouse Capital – Chris Warren (partner).
Ares Management – Stephane Etroy (head of European private equity).
SLR Consulting – Neil Penhall (CEO).
[Editor's note: Subsequent to publication, the article has been amended to clarify that Ares has USD 325bn of AUM across its strategies and asset classes.]
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