About the company

OptConnect is a provider of wireless internet connectivity solutions for unattended equipment such as kiosks, smart vending, digital signage and ATMs. It enables a reliable Internet of Things (“IoT”) connection to provide a cost-effective and dependable platform for customers.

Investment rationale

Active management and value creation

Graham Partners is a specialist in the technology sector, with a particular focus on industrial technology. The manager sees a number of routes to further value creation including accretive M&A, increased operating leverage and earnings growth.

 

About the company

valantic is a consultancy and provider of software solutions for digital transformations. The company has over 800 consultants and developers and is represented in Germany, Austria, Switzerland, Belgium, the Netherlands, Portugal and many other international locations.

Eraneos is an international management and technology consulting group providing digitalisation and transformation services, from strategy development through to implementation. The company has 1,000 consultants in four core markets (Switzerland, Germany, the Netherlands and Spain).

Investment rationale

Active management and value creation

About the company

Waystone is a provider of outsourced governance, risk and compliance services to the asset management industry. The company services a number of blue-chip asset managers with combined assets under management of US$2tn. Waystone has grown to now employ c.350 individuals in globally recognised epicentres for fund management including London, Hong Kong, Singapore, Ireland and Luxembourg.

Investment rationale

Our relationship

Pantheon has a long-standing relationship with Montagu. PIP is a primary investor and has also co-invested alongside the manager, while Pantheon holds an advisory board seat with Montagu. Early engagement with Montagu allowed Pantheon to secure a sizeable allocation in this opportunity.

Active management and value creation

As a joint owner of Waystone, Montagu will have the opportunity to implement organisational best practices and further support Waystone’s buy-and-build strategy.

In April 2023, shortly following PIP’s co-investment in the company, Waystone signed agreements to acquire Link Fund Solutions, a European fund services provider with £160bn of assets under oversight and administration, closing subject to regulatory approval and other conditions. Combined with the acquisitions of KB Associates, Centaur Fund Administration and T. Bailey Fund Services in the past year, a comprehensive product offering and exposure to structurally growing markets, Waystone is well placed to continue its current growth trajectory.

About the company

Sentinel Capital Partners (“Sentinel”) is a US-based private equity manager focused on investing in mid-market businesses. The manager has raised US$11.2 billion of capital since inception and has a track record of growing businesses and creating value for investors. In November 2022, Sentinel Capital Partners VII raised $4.35 billion from new and existing investors, with strong demand resulting in a larger than targeted fund.

Pantheon has a long-standing relationship with Sentinel with PIP investing in one of Sentinel’s previous funds. Pantheon also holds four advisory board seats with the manager.

Sentinel’s investment rationale

Sentinel targets mid-market companies and the fund will consist of roughly 20–25 equity investments of $150 to $175 million each.

The manager has a strong focus on core industry sectors including: business services, consumer products/services, healthcare services, and industrials.

When assessing an investment opportunity, Sentinel is seeking:

Investment rationale

Sentinel aims to create value through operational improvements that lead to both revenue and profit growth, while accretive add-on acquisitions also drive growth.

Sentinel is a top-quartile performing manager with a proven and repeatable investment strategy.

The manager has a stable senior investment team, with a combined total average of over 20 years at Sentinel.

Maiden investment from Sentinel Capital Partners VII

In November 2022, Sentinel made its first investment from Sentinel Capital Partners VII into L2 Brands (“L2”). L2 is a designer, manufacturer and marketer of custom-decorated apparel and headwear for the collegiate, destination and leisure, and corporate markets. Since its founding in 1991, L2 has become a diversified business with a history of long-term profitable growth.

Sentinel’s experience and track record in this sector will enable L2 to accelerate its growth, both organically and through add-on acquisitions.

About the company

The Access Group (‘Access’) employs approximately 5,000 people and is a leading provider of fully integrated mission-critical business management software solutions to medium-sized organisations in the UK. The company has approximately 60,000 customers and its products are used across a variety of functions such as finance, HR, payroll, hospitality, recruitment, health & social care, manufacturing & distribution, education and the not-for-profit sectors.

Investment rationale

Our relationship

Pantheon has a long-standing relationship with Hg, having first invested in one of their funds in 2005, and it currently holds 10 advisory board seats with the manager. Furthermore, PIP currently has six co-investments alongside Hg.

Active management and value creation

Hg Capital has significant specialised expertise having led over 170 investments in the software and services sector during the last 25 years.

The new investment will enable Access to continue to focus on its growth strategy and enhancing its products and solutions, specifically its SaaS platform. In addition, its comprehensive product range offers significant cross-selling opportunities. Finally, the company has an experienced in-house M&A team with a strong deal pipeline.

About the company

Headquartered in Paris, GEDH is a leading player in the private higher education sector in France.  With close to 300 employees, serving approximately 12,000 students, it delivers certified graduate programmes and specialised masters and post graduate degrees in subjects such as communication, artistic and cultural management, journalism, design, cinema, animation and software coding. The company owns nine schools that are spread across 25 campuses in France and beyond.

Investment rationale

Our relationship

Pantheon invested in Five Arrows’ latest fund and holds an advisory board seat. Furthermore, PIP has also invested alongside Five Arrows in a manager-led secondary.

Active management and value creation

Five Arrows has been tracking education and training businesses in this space as part of its thematic sector coverage and has already completed two deals in this area. The private equity manager has significant internationalisation and M&A experience that can help unlock the next phase of growth for GEDH. The company has already identified a number of bolt-on acquisition opportunities.

About the company

Smile Doctors is a provider of orthodontic treatments and services which include bracket and wire braces, clear aligners and retainer insurance. As of December 2022, the company had over 350 clinics in 27 states in the USA.

Investment rationale

Active management and value creation

Linden Capital Partners is a dedicated healthcare specialist firm and has an 18-year track record of healthcare investing. It partners actively with management teams to create value during its ownership period. Linden has been an investor in Smile Doctors since 2017, growing the business significantly through M&A with the completion of over 100 add-on acquisitions.

There are significant benefits to an independent orthodontic practice joining Smile Doctors including access to the latest orthodontic technology, marketing support and access to operational and financial resources to improve the business. The management team at Smile Doctors has developed an M&A playbook to target acquisitions that offer the potential for near-term cost synergies and revenue uplifts. The business has also formed a dedicated team focused on acquiring and integrating businesses to capitalise on these opportunities.

About the company

ShiftKey operates a leading marketplace platform that connects available nurses with healthcare facilities across the United States. The platform allows nurses to share their credentials and then apply to work daily shifts that match their requirements.

ShiftKey provides staffing solutions to over 10,000 facilities in over 30 states and boasts a network of hundreds of thousands of nurses.

Investment rationale

Active management and value creation

Lorient Capital is a middle market, healthcare-specialist manager focused specifically on healthcare services and technology. They have owned the business since March 2021.

ShiftKey recently completed a strategic investment in OnShift, a provider of workforce management technology for post-acute and long-term care facilities, creating the first complete solution to effectively manage nursing schedules. The investment will significantly increase the stickiness of ShiftKey’s customer relationships, enable cross-selling opportunities and provide customers with new and innovative products that will help benefit their organisations.

The company’s core market is in post-acute care, but the private equity manager sees growth opportunities in other healthcare end markets such as pharmacy, physical therapy and dentistry.

About the company

JSI is a consulting and broadband solutions provider to the telecommunications industry in the USA. The business offers a complete range of financial, engineering, regulatory, operational, and strategic services to telecommunications providers that are focused on rural communities.

Investment rationale

Active management and value creation

About the company

Prosci is a change management firm focused on helping individuals and organisations build change management capabilities. It has a network of over 30,000 change leaders worldwide through the Prosci Change Management Certification programme.

Investment rationale

Active management and value creation

During the investment period, Leeds Equity Partners plans to focus on the following key growth drivers:

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