GCP rebrands to Kester and offloads TEG

Alice Murray
23 October 2013

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The former European private equity division of Greenhill & Co, GCP Capital Partners, has simultaneously rebranded as Kester Capital and divested Travel Entertainment Group (TEG).

The rebrand comes as Goldman Sachs Asset Management replaces Greenhill & Co to become Kester's new cornerstone investor, alongside a number of other new institutional LPs.

Kester will be led by Cameron Crockett and Adam Maidment, both of whom have been with the firm since 2007. Brian Phillips, chief investment officer, has moved to a senior advisory position.

Kester will continue to focus on lower mid-market UK deals, targeting investments in the region of £5-25m.

The rebrand coincides with the disposal of TEG to Global Eagle Entertainment for £23m, generating a return of around 1.8x.

Previous investment
Kester (then Greenhill Capital Partners Europe) invested an undisclosed sum in TEG in August 2008. The deal saw the firm become a significant minority shareholder.

Company
Founded in 1997, TEG provides in-flight entertainment to the airline industry, and satellite and pre-recorded entertainment to the passenger cruise industry.

TEG operates through its main subsidiary IFE Services. The company is headquartered in the UK with regional offices in Madrid, Singapore, Sao Paulo, Nairobi, Kuala Lumpur, Oberhausen, Johannesburg and California.

Under Kester's ownership, the company has boosted its client base to more than 50 airlines and cruise ship operators, has implemented a new CEO and CFO, and completed a bolt-on acquisition in 2012.

People
Adam Maidment is a partner at Kester. Andy McEwan is CEO of TEG.

Advisers
Vendor – Harris Williams & Co (Corporate finance); Taylor Wessing (Legal).
Management – DWF (Legal).