In the latest private equity news uk, Primary Capital Announces Significant Investment in Diversity Travel but the exact value of the deal and the size of the investment have not been disclosed.
Diversity Travel was founded in 2008 by Harish Sodha, Chris Airey, Matt Truin, and Sarah Burrows.
Today, the company supports over 900 clients and has established itself as a prominent provider of travel management services.
Primary Capital has taken a majority shareholding in Diversity Travel, alongside Harish Sodha, Christopher Airey, and other members of the senior management team.
The investment will support Diversity‘s management team as they continue the strong growth momentum that the business has enjoyed either side of the Covid pandemic and seek to expand their presence in the US and European markets. Primary has provided significant equity finance alongside management, with alternative finance provider ThinCats providing debt facilities to support the buyout.
Private Equity News UK – Primary Capital Announces Significant Investment in Diversity Travel
Diversity Travel’s CEO, Chris Airey, expressed excitement about the investment and partnership with Primary as they embark on the next chapter of their development.
Diversity Travel very much looks forward to continuing to support customers and building itself into a truly global operator across the markets and geographies it serves.
Alec Parkinson, partner at Primary, commented that Diversity provides global travel management services to some of the world’s leading humanitarian and academic organizations with a clear customer-focused service proposition and a strong track record of growth.
Primary Capital’s investment in Diversity Travel will enable the company to invest in technology, international expansion, and service offering development.
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The investment firm shares Diversity’s vision for the business and is thrilled to be working with Chris and the Diversity team to support the company’s next stage of growth. Sodha, founder of Diversity, added that Primary’s support would help Diversity continue to thrive and offer a world-class service to the programs and clients with whom they work.
The debt funding team at ThinCats, led by Michelle Heptinstall, Stephen Gater, and Anna O’Neill, provided debt facilities to support the buyout in the lates private equity news UK report.
The deal is a flagship transaction for ThinCats’ North West team and marks the start of a relationship with a highly regarded mid-market sponsor and local business. The experience of funding high growth, sponsor-backed deals was critical to ThinCats delivering a competitive debt structure within the necessary timescales.
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Diversity Travel was advised by Houlihan Lokey, Addleshaw Goddard, and Travel Trade Consultancy. Primary was advised by Clearwater International, Cooley, and Evelyn Partners. Alvarez & Marsal, Kroll, Travology, Highwire, and Vista provided due diligence services. ThinCats was advised by Pinsent Masons.
Overall, Primary Capital’s investment in Diversity Travel is expected to support the company’s growth and development, enabling it to expand its customer-focused service proposition and establish itself as a truly global operator.
Private equity news UK – Frequently Asked Questions
Role of Private Equity Firms in the Travel Industry
Private equity firms play a significant role in the travel industry. They invest in companies that provide travel-related services, such as airlines, hotels, and travel agencies. Private equity firms bring capital, expertise, and strategic guidance to these companies, which can help improve their financial performance and increase their value.
Potential Risks Associated with Private Equity Investment in the Travel Industry
There are potential risks associated with private equity investment in the travel industry. Private equity firms usually have a specific timeline for achieving their financial goals, which can put pressure on the company to perform. In addition, private equity firms may focus on short-term financial gains at the expense of long-term sustainability. This can lead to cost-cutting measures that can negatively impact the quality of the company’s services.
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