Co-founders David Manning and Andy Ducker first launched Elaghmore in December 2016 with an initial raise of £60 million from institutions in the US and Europe. An additional £30 million has now been raised from US institutions to create Elaghmore Fund 1A. The new fund will help Elaghmore capitalise on a growing number of new acquisition opportunities in line with its strategy. Focused on acquiring small to mid-cap UK industrial companies across multiple sectors, Elaghmore’s investment strategy is to use its Executive team’s proven operational skills to deliver significant growth and value creation.
Andy Ducker said, “The additional £30 million will allow us to build on our success to date and invest in more businesses with great growth potential. It is a terrific endorsement of the work the team has done over the last four years, that investors have backed us with the new fund, Elaghmore Fund 1A. We already have a pipeline of interesting opportunities. The impact of the pandemic has seen the need for many companies to seek new investment, especially as Government support schemes end, and bank support is limited. Another driver is that many owners are concerned that possible changes to Capital Gains Tax rumoured for next year, mean that this is the time to realise the value of their own investments. Once we acquire them, the financial strength of Elaghmore, and our operational expertise means we are confident we can help these businesses prosper and grow. This new funding is another exciting moment in the development of Elaghmore, and we look forward to creating significant value for our investors.”
Since the original fund launched, Elaghmore has completed nine acquisitions. Each company acquired shares similar attributes, such as a strong management team, and a market-leading position. While organic growth accounts for most of the value created by Elaghmore, for companies in fragmented markets, Elaghmore looks for opportunities to make bolt-on acquisitions to strengthen market position or enhance product offering. Together, the companies have a combined annual turnover of £170 million and employ more than 900 people across the UK & Europe. Despite the challenges of Covid-19, the businesses have continued to trade well.
Kathleen McLeay, NCM Chief Executive said, “NCM have been involved with Elaghmore since their inception. We very much look forward to working with them on the new fund and the next phase of their growth.”