Operam Education Generates 2.5x Return for BGF
Deal News | Nov 14, 2024 | Business Growth Fund (BGF)
BGF has successfully exited its investment in Operam Education Group, generating a 2.5x money multiple return. Initially backing Operam in 2019 with a £7 million investment, BGF supported the company through a buy-and-build strategy leading to eight acquisitions. As part of this transition, Three Hills, a private markets investment firm, has acquired a significant minority equity stake, investing through its Impact Fund aligned with UN Sustainable Development Goals. BGF will continue its involvement with Operam alongside Three Hills, aiming to expand services within the UK education recruitment sector. HSBC has also provided senior debt facilities to assist with the transaction. Operam, founded in 2017 by CEO Eddie Austin, aims to address staffing challenges in UK state-funded education.
Sectors
- Education
- Private Equity & Investment
Geography
- United Kingdom – Operam Education operates within the UK, focusing on the UK state-funded education sector.
Industry
- Education – Operam specializes in the acquisition and growth of specialist education recruitment agencies, focusing on alleviating staffing challenges in the UK education sector.
- Private Equity & Investment – The article discusses BGF's investment and exit strategy, as well as Three Hills' new investment in Operam Education.
Financials
- £7 million – Investment by BGF into Operam Education since 2019.
- 2.5x – Money multiple return for BGF from the exit of its investment in Operam Education.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Operam Education Group | Target Company | Company | Specializes in the acquisition and growth of education recruitment agencies in the UK. |
| Business Growth Fund (BGF) | Exiting Investor | Company | A private equity firm that originally invested in Operam Education and achieved a 2.5x return upon exit. |
| Three Hills Capital Partners | Bidding Company | Company | A private markets investment firm that has acquired a significant minority stake in Operam Education. |
| HSBC | Banking Partner | Company | Provided senior debt facilities to support the transaction involving Operam Education. |
| Eddie Austin | CEO | Person | Founder and CEO of Operam Education Group. |