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Inflexion acquires £12m LMS portfolio and receives £21m commitment to buy-out fund

UK mid-market private equity firm Inflexion has acquired a £12m portfolio of minority interests in listed companies from property, venture and development capital firm London Merchant Securities (LMS). In addition LMS will make a £21m commitment to Inflexion’s latest buy-out fund.

‘This is a good strategic step, which continues LMS’s history of collaborative partnerships in the UK and US,’ said Robert Rayne, chief executive of LMS. ‘The acquisition of a strategic interest in Inflexion presents LMS with a good opportunity for profitable future investment in mid-market buy-outs and developmental capital. We believe that Inflexion is a superb choice of partner. Their strong development and buy-out team are a natural complement to LMS’s strong venture management.’

Inflexion held a first close on its buy-out fund in July last year with £50m of committed capital. The firm will hold a further interim closing in the wake of this deal and expects to hold a final close at £100m by the end of 2004.

The last 12 months have been successful for Inflexion,’ said Simon Turner, joint chief executive of inflexion. ‘Funds under management have grown substantially and we have continued to focus on mid-market private equity investments. This transaction, which includes a substantial capital injection from LMS, is a great endorsement of Inflexion’s investments strategy and team. It is a step change for the business and will enable it to thrive with a larger capital base to call upon.’

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