About the company

Founded in 2004, IPD Dental Group (or “IPD Dental”) is a Spanish-based producer and distributor of compatible prosthetic abutments for dental implants and related components.

IPD operates in over 30 countries, serving as a reference brand for dentists and laboratories across Europe and beyond. The company’s mission is to innovate and provide precise, advanced prosthetic solutions that meet the highest standards of dental implant restoration.

Investment rationale

• ProA Capital has been invested in the company since 2019 and, being familiar with the asset, it saw an opportunity to continue supporting the company’s growth trajectory.
• IPD Dental is a market leader in the European markets, particularly Spain, for compatible prosthetic abutments. Its strong market position and brand recognition made it an attractive investment opportunity.
• ProA Capital identified significant growth potential in IPD Dental’s business model. The private equity manager saw opportunities to expand the company’s product offerings, enhance its technological capabilities and enter new markets.
• IPD Dental’s commitment to innovation and high-quality products aligned with ProA Capital’s investment strategy. The company’s focus on providing advanced, easy-to-use prosthetic solutions was seen as a key driver of future growth.

Our relationship

Pantheon has an established relationship with ProA Capital and is currently invested alongside the private equity manager in a manager-led secondary opportunity.

Active management and value creation

• The company is expected to continue experiencing strong financial performance by growing its digital offering and expanding its product portfolio to include a wider range of dental abutments and related components. This expansion will allow the company to better meet the needs of its customers and increase its market share.
• Investments in technology will further enhance IPD Dental’s manufacturing processes and product quality. The company will continue to integrate advanced digital solutions to improve workflow efficiency and product precision. This is expected to increase production fivefold.
• IPD Dental will continue with its successful buy-and-build track record. It will further expand its presence in international markets, via organic growth and acquisitions. Recently, it has made acquisitions in Germany, Italy and Spain. This has increased its customer base and geographic reach, with operations in over 50 countries. The company’s strong reputation and high-quality products will facilitate its entry into new markets.
• ProA Capital will continue to work closely with IPD Dental’s management team to implement operational improvements. These efforts have resulted in increased efficiency, reduced costs and improved overall performance.

About the company

Tacala is the largest franchise operator of Taco Bell restaurants in the USA.

Founded in 1989 and headquartered in Alabama, Tacala operates over 360 Taco Bell locations across several Southeastern states, including Alabama, Georgia, Tennessee, Texas, Kentucky, Virginia, and North Carolina.

The company is known for its commitment to customer service, community engagement, and operational excellence, which has earned it recognition and awards within the Taco Bell franchise system.

Investment rationale

• Altamont Capital Partners (“ACP”) first invested in Tacala in 2012 and therefore is very familiar with the company and has held it through multiple funds for over a decade.
• Tacala’s position as the largest Taco Bell franchise in the USA made it an attractive investment. The company’s extensive network of locations and strong operational performance provided a solid foundation for growth.
• Pantheon recognised significant growth potential in Tacala’s business model and saw the opportunities to expand Tacala’s footprint through new unit development, same-store sales growth and strategic acquisitions.
• The investment aligned well with ACP’s focus on partnering with leading management teams to help middle-market businesses reach their full potential. Tacala’s experienced management team and strong track record of success made it a suitable partner for ACP.
• Tacala’s commitment to operational excellence and customer satisfaction resonated with ACP’s investment philosophy. The private equity manager’s experience in multi-unit consumer businesses positioned it well to support Tacala’s continued growth.

Our relationship

Pantheon has an established relationship with Altamont Capital Partners, having invested in primary funds, multiple co-investment opportunities and currently alongside the private equity manager in a manager-led secondary. In addition, Pantheon holds Limited Partner Advisory Committee (LPAC) seats in all of ACP’s primary funds I to IV.

Active management and value creation

• Tacala has more than doubled the number of restaurants from 160 to over 360 locations. This growth has been achieved through a combination of new unit development and strategic acquisitions.
• Tacala has more than quadrupled its earnings since ACP’s initial investment. This growth has been driven by increased sales, improved operational efficiencies and strategic expansion.
• In 2023, ACP and Tacala management formed a sister company to operate as a franchisee within the 7 Brew “drive-thru” coffee system. This diversification has provided additional growth opportunities and expanded Tacala’s business portfolio.
• Tacala has continued to model its “Here to Serve” principle, contributing over USD $4m annually to local communities through various charitable initiatives. This commitment to community engagement has strengthened Tacala’s brand and customer loyalty.
• Tacala has received numerous awards for its operational excellence, including the prestigious Glen Bell Award, which is given to Taco Bell franchisees that best demonstrate the brand’s values and high achievement in store operations.

About the company

IRIS Software Group (“IRIS”) is a UK-based global provider of business-critical software solutions and services. Founded over 45 years ago, IRIS initially focused on accountancy software and has since expanded its offerings to serve more than 100,000 customers across 135 countries.

The company provides integrated software solutions that help organisations manage core business operations efficiently. Their products are used by professionals in accountancy, education, payroll, HR, and finance to solve essential operational problems, ensuring compliance, reducing administrative time, and generating actionable data insights for better decision-making.

Investment rationale

• At the time of the investment, IRIS had a strong market position in the accountancy, payroll, HR, and education software markets.
• IRIS had an established recurring revenue model with a high level of revenues coming from subscriptions, driven by consistent regulatory updates and additional features.
• High customer retention rates, with approximately 90% gross revenue retention and more than 90% recurring revenues.
• Opportunities for both organic growth and acquisition-led consolidation in the sector.

Our relationship

Pantheon has a long-established relationship with Hg Capital. It has made several primary and secondary investments in various Hg Capital funds and has also completed multiple co-investments alongside the manager.

Active management and value creation

• IRIS has achieved a compound annual growth rate (CAGR) of approximately 18% in both revenue and EBITDA in the five-year financial period ended 30 April 2024, driven by organic growth and strategic acquisitions.
• The company expanded its presence in North America, which now accounts for over 25% of group revenues.
• IRIS made several acquisitions, including Taxfiler, AccountantsWorld, Practice Engine and Dext Software enhancing its product portfolio and market reach.
• The company’s valuation more than doubled from £1.3bn in 2018 to approximately £3.2bn in December 2023.
• IRIS continued to grow its customer base, serving over 100,000 customers globally and processing six million payslips worldwide each month.

Exit

Hg Capital made a partial sale of IRIS Software Group to Leonard Green & Partners (LGP), a US-based private equity firm which specialises in leveraged buyouts and growth capital investments. PIP made a return of 2.7x on the original cost and an internal rate of return (“IRR”) of 19%.

About the company

Arnott Industries (“Arnott”), founded in 1989, is a global leader in the engineering and manufacturing of aftermarket replacement air suspension products and accessories for passenger vehicles. Headquartered in Florida, the company offers a comprehensive range of products, including air struts, air springs, compressors and conversion kits.

Arnott’s products improve the ride quality of a range of cars and trucks, including vehicles manufactured by Audi, BMW, Cadillac, Mercedes-Benz and Porsche.

Arnott is known for its commitment to quality and innovation, serving the automotive aftermarket with reliable and high-performance solutions.

Investment rationale

• At the time of investment, Arnott Industries had a robust and scalable business model with substantial untapped growth potential.
• Arnott’s strong competitive position in aftermarket air suspension products provided a strong foundation for future growth.
• There was the potential to create value through accelerated new product launches, geographic expansion, and accretive add-on acquisitions.
• The partnership with Arnott’s founder, Adam Arnott, and CEO, Joe Santangelo, was central to the success of this investment.

Our relationship

Pantheon has a long-established relationship with Calera Capital, having previously invested in two secondary deals in their funds. Pantheon subsequently made a primary investment into Calera Capital Partners V.

Active management and value creation

• Over the course of the investment period, Arnott expanded its operations to serve customers in over 50 countries.
• Arnott grew its core product line to over 800 offerings, all while continuing to provide a quality service to its key distribution and installer partners.
• Company revenue more than doubled during PIP’s ownership, with double-digit organic growth rates and the completion of four highly strategic and accretive add-on acquisitions.

Exit

• In November 2024, Arnott was acquired by MidOcean Partners, a US-based private equity manager specialising in middle-market private equity, structured capital and alternative credit investments. PIP made a return of 2.7x on the original cost and an internal rate of return (“IRR”) of 15%.

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About the company

GuidePoint Security is a US-based global provider of consulting services to the public sector and commercial markets, focusing on management, technology and risk consulting.

The company is headquartered in Washington D.C. and employs more than 17,000 professionals in more than 55 locations globally. GuidePoint Security is led by seasoned professionals with proven and diverse expertise in traditional and emerging technologies, markets, and agenda-setting issues driving national and global economies.

Investment rationale

• Complexity of the cybersecurity landscape is becoming more pronounced, with ever-evolving threats and thousands of products available to customers. Therefore, demand for cybersecurity services from organisations is set to grow.
• GuidePoint Security had the potential to scale rapidly via a buy-and-build strategy and organic growth.
• The business had a team of highly experienced cybersecurity practitioners and consultants with deep domain knowledge and expertise. They had developed a best practice approach to evaluating, selecting, implementing, managing and optimising cybersecurity solutions.

Private equity manager profile

• ABS Capital Partners (“ABS Capital”) provides growth equity capital to business-to-business (“B2B”) software and tech-enabled services businesses. The businesses are typically underpinned by strong technology and data and are looking to scale up with the right partners.
• The private equity manager has over 30 years of investment experience and has invested in approximately 130 companies across eight funds.

Our relationship

Pantheon has a long-established relationship with ABS Capital. It has made several primary and secondary investments in various ABS Capital funds and has also previously co-invested alongside the manager.

Active management and value creation

• ABS Capital accelerated the growth trajectory of GuidePoint Security by focusing on its organic growth and geographic expansion. This has broadened the client base across the USA and positioned it for international expansion. GuidePoint Security has more than 3,800 client organisations across the USA, including one third of the Fortune 50 and 40% of the Fortune 500, along with more than half of the US government cabinet-level agencies.
• ABS Capital joined GuidePoint Security’s board of directors. This has brought additional expertise and strategic guidance to the company.
• ABS Capital also recruited top executives with experience in building and leading finance teams for high-growth technology companies.
• ABS Capital has supported GuidePoint Security’s commitment to hiring top cybersecurity talent and investing in innovative service offerings to address new and emerging risks.

Exit

• In October 2023, GuidePoint received another round of funding from Audax Private Equity, a middle market investment firm. PIP took the opportunity to partially exit the investment at a money multiple of 5.7x and an internal rate of return (“IRR”) of 74%.

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About the company

Based in Poland, Velvet CARE is a major producer and distributor of branded paper tissue products, including toilet paper, facial tissues, kitchen towels, moist wipes, cosmetic pads and buds. It employs more than 850 people across offices and manufacturing facilities in Poland and the Czech Republic.

The company owns the iconic Velvet CARE brand in Poland, which has a 20-year history and a brand recognition of 97% in the country.

Investment rationale

• Abris Capital Partners (“Abris”) has a strong track record in the tissue manufacturing sector. Through its prior investment in a jumbo roll paper producer in the region, and the evaluation of potential add-on acquisitions, Abris has developed significant insights and sector knowledge in the space.
• Velvet CARE is a non-discretionary consumer staples business, where industry growth is driven by the increase of tissue consumption per capita in the Central and Eastern Europe (CEE) region, as well as product innovations.
• At the time of the investment, Velvet CARE was considered to benefit from a number of competitive advantages: strong brand awareness; private label growth opportunities; and margin improvement potential following recent capital expenditure investment for the installation of a new jumbo roll machine.
• In addition, Abris identified upside potential from a possible merger with upstream and downstream value chain players, including those that were already identified by Velvet CARE’s management team, thus offering the potential to create a regional leader.

Our relationship

Pantheon has a long-established relationship with Abris, having invested in the two most recent funds through both primary and secondary investments. Pantheon is also an LPAC¹ member in both funds.

¹Limited Partner Advisory Committee.

Active management and value creation

• During Abris’ investment holding period, Velvet CARE sales increased by 2.3 times and the company’s EBITDA grew by seven times.
• Velvet CARE expanded its export business fivefold.
• In 2020, the company completed the add-on acquisition of Moracell, the largest manufacturer of paper hygiene products in the Czech Republic. This consolidated Velvet’s presence in the CEE market, strengthened the company’s position as a regional leader, and expanded its international footprint with limited client overlap.
• More than EUR 130m was spent on production, automation and storage capital expenditure to improve competitive positioning across all product categories. In addition, this improved profitability and product quality.
• Following the development and implementation of a comprehensive Environmental, Social and Governance (“ESG”) programme Velvet CARE received B Corp certification in 2023, demonstrating the highest standards of social and environmental performance.
• The company also received a gold medal from EcoVadis, an independent sustainability rating agency.

Exit

Velvet CARE was acquired by a fund managed by Partners Group in December 2023. PIP achieved a gross IRR of 30% and net multiple of invested capital (MOIC) of 4.1x

About the company

Perspective is a wealth and investment manager with 143 advisers providing coverage of the UK market through a network of 40 local offices.

Headquartered in Chorley, United Kingdom, the business provides financial advisory services in the areas of retirement planning, asset management, personal wealth and corporate planning for customers in the United Kingdom.

Investment rationale

• The financial advisory market in the UK is highly fragmented. CBPE saw the potential to consolidate the market through Perspective.
• The business had strong foundations from which to launch a buy-and-build strategy. With a strong compliance culture, client and adviser churn was low. The team was highly experienced and well-aligned with CBPE on strategy. The business had experience of undertaking M&A but had only recently started its M&A journey.
• CBPE and the team recognised the opportunity to build a diversified wealth manager of scale through acquisitive growth of the long tail of relatively small Independent Financial Adviser (“IFA”) firms. Many of these IFAs were approaching retirement and did not have the resources to invest in new technology and compliance systems.
• CBPE partnered with Perspective’s management team, who all reinvested in the business, therefore ensuring a strong alignment of business objectives.
• CBPE understood the key element of a successful wealth business and the importance of maintaining Perspective’s client-centric culture, which reduced compliance risks and ensured client retention and growth.

Private equity manager profile

• Founded in 1984, CBPE is a London-based private equity investment firm that specialises in investing in small and middle-market companies in the UK. The firm has a particular focus on acquiring businesses from founders and management teams in sectors such as healthcare, business and financial services, industrials and technology.
• Since becoming an independent business in 2008, CBPE has raised three funds and has over £1bn in assets under management.
• CBPE works very closely with the management teams of its portfolio companies to drive growth, and is adept at implementing buy-and-build strategies. Since 2008, CBPE has completed more than180 investments, demonstrating its active role in the market.

Our relationship

• Pantheon has a long-established relationship with CBPE. It is a primary investor in several funds, and a secondary investor in CBPE IX and has also previously co-invested alongside the manager.

Active management and value creation

• During CBPE’s investment, the business grew significantly from £2.6bn to £8.0bn of assets under management through a focused buy-and-build investment strategy, supported by strong organic growth.
• Together with Perspective, CBPE built a highly efficient M&A execution and integration team, which allowed Perspective to become the go-to acquirer for retiring Independent Financial Adviser businesses. Perspective has completed over 50 acquisitions since CBPE invested in it.
• CBPE facilitated significant investments in central support functions and technology. This enabled all acquisitions to benefit from consistently high standards of advice and compliance.

Exit

• In February 2024, Perspective agreed a sale to Charlesbank Capital Partners, a US middle-market private equity firm. The transaction closed in May 2024. PIP made a return of 5.4x on the original cost.

About the company

Founded in 2003, Altor Equity Partners (“Altor”) is a mid-market private equity firm based in Europe that seeks to scale and optimise companies with world-class potential through fundamental business improvements and earnings growth.

The consideration of sustainability is one of many factors that form part of Altor’s investment approach. Beyond mitigating sustainability risks as part of its investment process, Altor has implemented a framework of comprehensive sustainability performance monitoring of its portfolio companies.

It is a signatory to the Science Based Targets initiative (“SBTi”) and it is supporting its portfolio companies to develop science-based targets and implement decarbonisation pathways. Altor’s ambition is to make every Altor-backed company a sustainability leader in its respective industry.

PIP has backed Altor since 2003 and, in March 2024, made a commitment to Altor’s ACT I, which is a fund focused on investment opportunities that have a specific green transition or industrial decarbonisation theme. In Europe, there is a significant and growing push to decarbonise supply chains in order to meet the European Union’s target to reduce net greenhouse gas emissions by at least 55% by 2030, compared to 1990 levels.

As a result, Altor believes that many businesses are seeking to secure compliant, more sustainable supply chains to achieve their own targets, and this push is leading to an increase in businesses that can help to  deliver sustainable supply chains at significant scale within the next five to 10 years.

Altor’s ACT I aims to primarily invest in companies across a range of sectors where the green transition is central to their business models, and will include businesses that either have existing green transition value chains or businesses that are developing newer but proven industrial processes to directly deliver green end-solutions.

Altor has already identified a long list of attractive targets within a range of investment themes.

About the company

Yellow Hive is a leading Dutch insurance distribution platform with active broker and managing general agent (“MGA”) capabilities. The company, which serves both small and medium-sized enterprises and consumers, is a financial services intermediary for property and casualty insurances, employee benefits, risk assessment and mortgages.

The business is headquartered in the Netherlands and has more than 500 employees.

Investment rationale

• Yellow Hive had a high-quality platform displaying robust historical organic growth supplemented by proven buy-and-build capabilities.
• Resilient business model with expansion into higher margin MGA/niche sectors, which will drive cross-selling opportunities with the potential for significant synergies and economies of scale.
• Fragmented and growing underlying market provides an attractive buy-and-build opportunity.
• A strong alignment with a core, high-quality private equity manager.

Our relationship

Pantheon is an existing primary investor in IK Partners’ (“IK”) Small Cap Fund II and has been an active investor with the private equity manager since 2000, having invested in several of their mid-cap funds on a primary basis and completed eight co-investments.

Active management and value creation

• IK acquired Yellow Hive in 2020 and has since grown revenue and EBITDA by 5.5 and 6.0 times respectively.
• Mergers & Acquisitions are in the DNA of the company. All the business segments are supported by a shared services centre, which enables the business to seamlessly integrate new businesses to the platform, driving efficiency and generating synergies. Furthermore, the company has a good track record of transferring its portfolio of policies into its own MGA channel, and therefore further synergies are anticipated.
• Yellow Hive has the long-term goal of replicating the platform that it has today on a pan-European scale. The company, assisted by IK, has built a pipeline of targets into its plan and aims to execute on this to grow business earnings.

In 2020, and subsequently in 2023, PIP invested in Action, a leading European general merchandise discount retailer operating across 12 countries, which is backed by 3i Group plc, an international investment company focusing on private equity and infrastructure.

Action believes that sustainability should be accessible for all, by providing customers with good quality, sustainable products at the lowest price.

To achieve this, the company has set itself ambitious and measurable targets through the implementation of the Action Sustainability Programme. Initiatives delivered to date as part of this programme include:

• A commitment to reduce Scope 1 and 2 carbon emissions by at least 60% by the end of 2030, from a 2021 baseline. In the last two years, and while significantly growing the store and distribution network, the company has already achieved a 46% reduction as part of this target. This was delivered by procuring c.90% of electricity from renewable sources, disconnecting most stores from the gas supply, improving energy efficiency of stores, installing solar panels at seven out of 13 distribution centres, switching to biodiesel for 150 Action trucks, and piloting four new zero-emission e-trucks;
• Ambitions to reduce its emissions from the supply chain. The company has now established a full baseline for Scope 3, which represents 99% of its total carbon footprint (of which product raw materials, manufacturing and transportation represent 75% of the total);
• A focus on product circularity, working in partnership with Circle Economy, the Ellen MacArthur Foundation and Delft University of Technology. The company is working end-to-end from initial product design to disposal to improve material inflow, product lifespan and ease of recyclability.
• In 2023, Action delivered circularity improvements of +4.85% across all product categories and launched its first ever circular product in the form of plastic storage baskets. These baskets are a closed-loop product, made entirely from damaged items that have been returned by customers, thereby avoiding 5,000kg of waste. The company will look to expand its range of recycled, closed-loop products in the future; and
• Action has made significant progress in its goals to source more certified sustainable products. During 2023, Action sourced 100% sustainable cotton (private and white label products) and cocoa (private label products), and made significant progress towards its goal of achieving 100% sustainably sourced timber by 2024, with 95% of timber products certified as sustainable in 2023.

Action intends to build on its progress so far to ensure that it is able to meet the expectations of its cost- and eco-conscious customers.