Avance

Sovereign Capital completes £29m acquisition of Avance Group

Sovereign Capital Partners LLP, the independent lower mid-market UK private equity provider, has with the management of Avance Group acquired 100% of the share capital in Avance from the shareholders of BCW Group plc in a management buy-out.

Avance is a leading BPO credit management business providing business critical services to a range of UK and international blue chip clients, with a particular expertise in the leisure and utilities sectors. Services include credit process outsourcing, credit management projects and a number of auxiliary services such as dispute management.

Through a combination of sector knowledge and technology Avance has developed unique systems for its clients, offering an innovative approach that has proved to be a key differentiator in their markets. The business operates from two sites in Glasgow and Leeds and employs over 500 staff.

The total funding comprises equity to finance the MBO and a further commitment to fund the Group’s expansion through organic growth and acquisition, applying Sovereign’s well-established buy-and-build strategy. Debt has been provided by Royal Bank of Scotland. Avance intends to broaden its range of services, expanding the BPO business into new sectors and geographical areas.

The Avance management is led by Jarlath McHale, Managing Director together with Andrew Bradshaw, Finance Director.

Jarlath McHale, Managing Director, Avance said: “Avance is a focused and efficient business with an established reputation for delivering first class services to its clients. Sovereign understood our sector, the market opportunity and our plans for accelerated growth. With Sovereign’s support we will continue to build the business and seek to expand our core offering and geographical reach.”

Philip Conboy, Director, Sovereign Capital, commented: “We are delighted to have supported the acquisition of Avance, which is a first class operator with strength and depth of management, not only at senior level but throughout the business. The credit management outsourcing sector is forecast to have continued growth and we believe that the company is well positioned to take advantage of this. We look forward to working with Jarlath and the team in the coming years to deliver the strategy.”

“This is Sovereign’s second platform investment in the financial services sector in under a year and we will continue to seek quality investments in this sector.”