Funeral Services Partnership Ltd (United Kingdom) - Nov 2007

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01 November 2007

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Octopus Investments Intermediate Capital team has led a £3.75m funding round to fund the buy-andbuild strategy of Funeral Services Partnership (FSP). Existing investor Aberdeen Asset Managers Growth Capital (now under Maven's portfolio) also participated in the deal, which represents Octopus Investments Intermediate Capital’s first investment from its new £45m fund. Of the £3.75m funding, Octopus provided £2.75m in exchange for a sub-10% preferred equity stake. “What we have created is a much more amenable form of investment than a typical VCT would provide,” explained Stuart Nicol who led the deal for Octopus. “Our model is based on taking a lower risk and is more akin to a mezzanine product.” The company will look to take on an appropriate level of senior debt in due course. Aberdeen provided £1m which follows the £4m founding investment it made in FSP between April and June 2007 (2 July 2007, page 22). Aberdeen owns a significant minority stake in the company. The new funding has enabled FSP to complete the acquisition of a further five funeral businesses in the South of England.

Company

FSP was founded earlier this year by Phillip Greenfield, a former founder and director of the Fairways funeral business, which was sold in a multi-million pound transaction in 2006. The company aims to grow into a major independent funeral services group made up of funeral services businesses and associated services, such as headstone suppliers, located across the UK. Following recent acquisitions, FSP now operates from 15 locations with a core base of seven funeral services firms in the Midlands and South Yorkshire. FSP expects the recent changes announced to capital gains tax due to come into effect in April 2008 to benefit it as private vendors look to divest their businesses. FSP employs 40 staff.

People

Stuart Nicol led the deal for Octopus and will join the board of FSP as a non-executive director. Andrew Ferguson led the deal for Aberdeen. Phillip Greenfield is the CEO of FSP and Guy Turner is finance director.

Advisers

Equity - Marriott Harrison, Rebecca Briam (Legal)Equity - Wragge & Co, Neil Pearson (Legal)Management - Cooper Parry, Heath Walker (Corporate Finance)Management - Freeth Cartwright LLP, Karl Jansen (Legal)

Sourced from: 0 unquote" 358 (Dec 2007)