Inflexion generates 3.7x on the £232m IPO of Sanne Group plc

Inflexion Private Equity is pleased to announce the successful IPO of Sanne Group plc, the international provider of trust and fund administration services, generating a realised and unrealised return of 3.7x its original investment and an IRR of 80%.

Sanne Group plc will join the main market of London Stock Exchange, with pricing set at 200 pence per share and a market capitalisation of £232m. Inflexion will retain an 11 percent shareholding in the company, worth £26m at the float price.

Inflexion invested in Sanne in October 2012 through a Partnership Capital transaction. During our involvement we supported two acquisitions from State Street in June 2013 and May 2014. Both acquisitions added considerable scale, international reach and profitability to the Group.

Inflexion encouraged management to invest in highly skilled people, adding further strength to the team. During our partnership, headcount in the business grew by over 80%. Sanne drew support from Inflexion’s international teams in India and China to explore growth opportunities within those local markets; the business also expanded its footprint opening an office in Singapore. Between 2012 and 2014 the company generated revenue growth of 38% CAGR and EBITDA growth of 45% CAGR.

Simon Turner, Managing Partner at Inflexion said “Sanne is a fabulous investment which has achieved exceptional profit growth in less than two and a half years. We enjoyed a strong partnership with Sanne’s ambitious management team and are all delighted with the success of the IPO today. Sanne marks Inflexion’s third IPO in under a year. We are pleased to see our other listed businesses are still performing strongly in the public markets.”

Dean Godwin, CEO, Sanne Group plc said “Inflexion has been a very supportive partner and has also encouraged the team to challenge its ambitions, enabling us to create a step change in the business. Their guidance during both acquisitions was invaluable and helping us strengthen the senior team with high quality appointments leaves our business very well placed for the future. We look forward to building on our success to create value for our shareholders.”

The sale process was led by Richard Swann and Florencia Kassai.