We aim to identify sector-leading businesses with significant growth potential over the long term. While we primarily invest in established companies, we have also provided development capital to businesses at a relatively early stage of their evolution.
We invest in UK-headquartered businesses across a wide range of industry sectors. While these can be valued at up to £200 million, we continue to back smaller companies, in particular fast-growing businesses with roll-out potential. Many of our successful investments have been led by managers with the ability to develop and defend market leading positions in their industry sectors. However, we recognise that few companies are perfect and we are committed to working with our portfolio companies to identify improvement and turnaround potential, thereby generating value for our funds and all other stakeholders.
Most of our transactions are management buy-outs, whether as part of a corporate spin-off or from within a privately-held company. Where appropriate, we will complement and strengthen management teams with external appointments, either at completion or during the early stages of our involvement.
We frequently provide additional funding to existing portfolio companies to fund their growth plans, either organically or through acquisition. In the currently challenging economic environment, a number of our investments are actively consolidating their industry sectors with our support.
We also provide development capital to smaller companies, where we can identify an opportunity to invest a significant amount of equity over the life of the investment. We have extensive experience of supporting a variety of growth strategies, including roll-out and buy-and-build programmes.
Graphite provides specific assistance in areas such as financial and management information reporting, tax structuring, hedging and procurement. Our portfolio management team is supported by a network of specialist external advisers.
We aim to back the highest quality management teams in their fields. Together with them, we identify relevant improvement initiatives for the period following our investment, some of which can be implemented quickly, while others may take longer to be completed. Our executives will work with the management team during the implementation phase, specifically focusing on areas in which revenue growth and overhead cost savings can be achieved most effectively.
We have successfully realised over 60 investments in the last 15 years. While historically many of our investments were listed on the London Stock Exchange, the majority of our recent exits have been to trade and financial buyers.
We are flexible and opportunistic in the timing of an exit, understanding that economic and sector cycles play an important role. We work closely with our management teams to determine the best time for realising the full potential of the investment for the benefit of everyone: the business, the management team and the investors.
While we typically expect to hold portfolio investments for four or five years, we have successfully sold some investments within less than two years, while others have remained in our portfolio for over ten years.
Graphite Capital focuses on transactions valued at up to £200 million across a wide range of industry sectors
Up to £200m
Graphite has followed up on a number of areas highlighted during due diligence, further professionalising the business to support its next phase of growth.
Phil May, CEO, U-POL
As a start up, we were particularly impressed with the way in which Graphite understood our industry and our business. Their direct approach and hands-on support have allowed us to focus intensely on rapid strategic growth.
Mark Pain, Chairman, London Square
Graphite supported us as we developed new retail formats, built a management team with strength and depth across all operational areas and grew sales and profits dramatically.
Keith Pacey, Maplin Electronics
Graphite helped us grow the business by strengthening our management team, financial controls and corporate focus.
Jean-Charles Julien, U-POL