Leeds-based private equity house Key Capital Partners (KCP) has enjoyed a successful run following two deal completions in the space of a week.
The firm, which also has offices in Birmingham and London, exchanged deals with recruitment firm Hallam Medical and catering business Alliance in Partnership (AiP) in April.
Both transactions came shortly after KCP made a 3.5x return following the sale of TSC Foods, the makers of Glorious! soups, to Edward Billington and Son.
Hallam Medical, a rapidly growing provider of nursing and medical staff, secured a £3.3m investment from KCP on April 7.
The company recorded sales of £14m in the year to April 2014 and currently employs 40 staff.
The investment will allow Hallam Medical to enhance its offering to clients across the UK.
AiP was backed by KCP on April 14 following an £11m management buyout, which saw the firm invest £5.2m into the specialist educational caterer.
AiP was established in 1998 and provides to over 35,000 pupils across 170 schools in central England and West London.
KCP focuses on the smaller buy-out market making investments in profitable growing companies.
The firm’s portfolio is progressing well, with a number of additional announcements to be made in the coming months.
In addition to the two new investments, KCP is expecting to complete the sale of a second portfolio company in May and has two companies in IPO processes.
Peter Armitage, the partner responsible for KCP’s Leeds office, said:
“Now is a very good time to be doing new deals with the economy recovering and confidence returning.
“Management teams, which may have been hunkered down through the recession have regained the confidence to buy their businesses and vendors can expect to get proper value.
“The last few years have been pretty tough for everyone but there has been a recognisable change in the climate and things are beginning to look a lot more positive.
“The public markets are definitely receptive to exciting growth companies and this is also helping to drive the public and private M&A market.”