Capital for Colleagues specialises in advising, investing in and supporting the growth of existing or aspiring employee owned businesses. Provided our criteria are met, we will undertake equity and debt investments using our own patient capital.
We have a proven management team with over fifty years combined experience in the employee owned business sector (‘EOB’). We have a wide network of contacts and associates, as well as established access to investment opportunities. This enables us to identify and make strategic investment decisions – exclusively in employee owned businesses.
The EOB sector currently accounts for a combined annual turnover in excess of £30 billion in the UK, representing over 4% of the nation’s GDP.
This sector is growing at over 10% per year and successive governments in the UK have publicly pledged their support to see this continue. In spite of this growth, British EOBs traditionally suffer from limited funding options and support, as established providers of equity capital and debt are perceived to not fully understand the needs of this growing sector.
Consequently, Capital for Colleagues has effectively introduced a new asset class to investors by backing established EOBs and assisting companies looking to transition to EOB status.
Capital for Colleagues plc has a clearly defined strategy of advising, investing in and supporting the growth of mainly UK companies that either have an existing structure of employee ownership or are looking to establish one.
Becoming an employee owned business is now recognised as an attractive succession option for SME businesses in particular. Capital for Colleagues can advise companies on all aspects of becoming employee owned, including helping to project manage the transition. If funding is needed, Capital for Colleagues will look closely at the investment opportunity and provided our criteria are met, consider undertaking an initial equity investment. This may be supported by debt funding to support the growth of the business.
Investing in Capital for Colleagues provides investors with exposure to an alternative, distinct and strongly performing asset class. We have already made over 20 investments and we maintain an active growth strategy, in order to maintain our leading position within the EOB sector.
Notably, we are one of the very few specialists advising and investing in the EOB sector and quite naturally we have developed a strong relationship with the leading industry body, the Employee Ownership Association. This well-established link provides us with access to one important pool of potential businesses to work with, whilst also offering an additional service and resource to members of the EOA.
Capital for Colleagues plc listed on the NEX Exchange (formerly the ISDX Growth Market) in March 2014 to invest in current and aspiring, primarily UK-based, EOBs.
Our structure and experience enables us to advise, invest in and support EO businesses as they grow. This support includes working with boards, acting as Trustees for Employee Ownership Trusts, administering share option schemes and helping to shape the culture of such businesses. We will also financially support our existing portfolio companies, so that they can achieve their potential.