HgCapital exits Epyx, reaps 2.7x return

Ellie Pullen
31 October 2013

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HgCapital has sold UK-based Epyx to NYSE-listed fuel payment processing company Fleetcor, making 2.7x its original investment and a gross IRR of around 27%.

The exit marks the fourth divestment for the firm's HgCapital 6 Fund, which closed in December 2009 on £1.75bn. According to HgCapital, the fund has seen returns averaging 2.8x original money and has generated a gross IRR of approximately 45%. This fourth realisation from the fund means the vehicle has returned around 42% of invested capital to its LPs.

The gross IRR realised through the sale of Epyx includes a recapitalisation of the company earlier this year and a series of dividends to HgCapital 6's LPs in 2012.

HgCapital backed the management buyout of Epyx in May 2009, a transaction that was valued at £96m, according to unquote" data. HgCapital acquired a 49% stake in the business, with management retaining the balance.

Company
Founded in 2000 and headquartered in Meriden, Epyx employs around 70 staff and is believed to have recorded turnover of £20.8m in 2012, as well as an operating profit of £14.5m.

Epyx provides a private online marketplace for UK-based vehicle fleet operators. The company's 1link portfolio of platforms is designed to allow customers and suppliers in the industry to reduce costs and administrative work by connecting the country's vehicle fleet operators and more than 9,000 suppliers of critical services.

The 1link platforms provide several services to the vehicle fleet industry, including vehicle acquisition, service and maintenance, relicensing, daily rental and vehicle disposal.

People
Greg Connell is the founder and CEO of Epyx. Nic Humphries is a managing partner at HgCapital.

Advisers
Equity & management – PwC (Corporate finance); Linklaters (Legal); DLA Piper (Legal).