Foresight reaps 3.5x money in Mowgli exit to TriSpan

Ero Partsakoulaki
30 January 2023

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Private equity firm Foresight Group has sold UK chain of Indian food restaurants Mowgli to private equity firm TriSpan reaping approximately 3.5x money.

Foresight initially invested in the company in 2017 via its first Foresight Regional Investment Fund, which raised GBP 58m in December 2016.

The vehicle, which backed 17 SMEs in the North West, South Yorkshire and North Wales regions, is fully invested and is now in realisation phase, a spokesperson for the firm told Unquote. The fund has so far returned "well over" GBP 100m from six exits, the spokesperson added.

Over the last five years, Mowgli expanded its presence from two sites in Liverpool and one in Manchester to 15 locations in the UK, according to a press release. It also supported founder and CEO Nisha Katona with the build-up of the company's team introducing Dame Karen Jones as chairperson, Matt Peck as finance director and helping recruit Lucy Worth as operations director, it said.

TriSpan won a PwC run auction process, the spokesperson said. The new owner will support the company's growth, including the opening of more sites, according to the press release. Mowgli has confirmed plans to open sites in Brighton, Bristol and Edinburgh in 2023, it said.

TriSpan Opportunities Fund II is the second co-investment fund of Trispan with a target size of USD 500m, according to Unquote Data. It held its first close at USD 100m in November 2020.

Foresight is currently deploying capital from its eleventh regional fund which held a final close on GBP 60m in January 2023, according to Unquote Data. It will support the growth of small and medium-size companies in Scotland and will make debt and equity investments of GBP 1m to GBP 5m.

It is also in the market fundraising for Foresight North East Fund which held a first close on GBP 38m in June 2022. It has a target size of GBP 60m to support companies across all sectors with headquarters or significant operations in County Durham, East Riding of Yorkshire, North Lincolnshire, North Yorkshire, Northumberland, Tyne and Wear, Teesside and West Yorkshire.

Company
Mowgli was established in 2014 by Nisha Katona, founder, CEO and executive development chef. Its first restaurant opened in Liverpool and the chain has since grown to several cities across the UK. Each restaurant is committed to sustainability with the team organising local fund-raising events, focusing on energy usage and sustainable sourcing.

People
Foresight Group − Claire Alvarez (partner).
Mowgli − Nisha Katona (founder and CEO), Dame Karen Jones (chairperson).

Advisers
Vendor − PwC (corporate finance); CMS (legal).
Buyer − Mayer Brown (legal); PwC (debt & capital advisory).