investments


WHP Telecoms

Mobile telecoms infrastructure provider

July 2014

£3.0 million investment

Exited in June 2014

www.whptelecoms.com

View case study

“We were looking for a partner who understood what we wanted to achieve and could help guide us on our strategic decision-making”

Rob Potter, CEO | WHP Telecoms

The business...

WHP provides end-to-end services for the deployment, upgrade and maintenace of moblie telephone networks for the network opertors such as Vodafone and O2. The business is one of only seven 'tier one' support service companies operating in its sector.

The deal...

KCP invested £3 million as part of tax efficient equity release deal for the three existing director­shareholders, taking a 28% minority shareholding in the Company.

The Company was ideally positioned to take advantage of the huge increase in demand for mobile telephony services and the need to roll-out and increase the bandwidth required to meet this demand. It was clear to us that the capabilities of the business were second to none in the industry.

KCP value-add...

During our investment we:

  • Carefully crafted an investment structure to enable the directors to maximise the value of their equity release while leaving them with a significant majority shareholding which was a key requirement of the deal.
  • Was involved in identifying and appointing a Finance Director and appointed a Chairman from our network of contacts
  • Reviewed and evaluated various acquisition opportunities but concluded that organic growth was the better option for the Company at the time
  • Provided advice and guidance to the directors on the secondary exit

Exit...

As a result of the actions taken and the higher profile achieved, the Company was approached by a private equity fund which made a very attractive off-market offer. This led to a secondary £38 million buyout, just two years after KCP's initial investment, where the three director-shareholders were able to realise further significant amounts and continue in their roles.

Key highlights...

  • Turnover growth of 69% achieved during the period of KCP’s investment
  • The improvements and growth in the Company resulted in an uplift in value of 175% at exit
  • Staff numbers increased significantly as a result of WHP’s growth, with over 100 additional employees joining the team during our period of involvement