Altitude scales-up returns

10 September 2017

Science Park based Altitude Partners has sold its stake in Gradwell Communications to a management buy-in team with private equity backing. The exit realised a strong 2.7x investment return. Altitude originally invested £1.1m in 2012 in a development capital transaction to support the growth of the business; over the course of the investment period EBITDA doubled and turnover rose to £7.4m.

Gradwell Communications pioneered Voice over Internet Protocol (VoIP) telephony in the UK. The business has diversified substantially since Altitude’s investment, providing a wide range of cloud-based services and connectivity to smaller SMEs.

Simon White, Partner at Altitude, said: “We have worked closely with the team since day one of our involvement, to help deliver a company with a stable and diverse product line and a growing customer base.”

Altitude’s second fund has just been announced, focused on investing between £1m and £4m, in ambitious teams leading growing businesses based in the South. It will target established companies requiring development capital or who are seeking a management buy-out.

Investments in the second fund have been structured to qualify for Business Property Relief and Investor Relief. Altitude has seen a significant increase in the number of investors committing to Fund Two following its announcement and it is fast approaching its first target. Altitude Partners is already in active discussions with potential investee companies as a result.