Foresight exits The Bunker through sale to Palatine Private Equity

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Foresight Group (“Foresight”) is pleased to announce the successful sale of Kent-based The Bunker Secure Hosting Limited (“The Bunker”) to Palatine Private Equity for an undisclosed sum.

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The Bunker builds, hosts and manages high security, high availability IT infrastructure platforms for its customers, providing competitive Infrastructure and Data Storage solutions with the highest levels of security, resilience and performance.

Foresight has been a longstanding shareholder, having made its first investment back in May 2006 with funds from Foresight VCT and Foresight 4 VCT.  At that time, The Bunker, which was founded in 2003, had acquired its subterranean sites providing 28,000 sq ft of data storage facilities in Ash and Greenham Common from the MOD and was loss-making, despite generating £1.8m of annual revenues.  The growth capital provided by Foresight was used to scale the facilities materially.

With Foresight’s support, the business has grown strongly driven principally by customers’ security concerns and businesses continuing to move systems to “the cloud”, and has experienced a compound annual growth rate of over 14% of recurring revenues for the past three years with annual revenues growing to in excess of £9 million, having built an expert reputation in the specialist FinTech space.

Tom Thorp, Director of Foresight and Investment Director of The Bunker (until completion) said: “The management team at The Bunker has done a terrific job in growing the business in what have been challenging markets.  We are delighted to have been a longstanding shareholder in this dynamic business as the management has developed it into the leader in its field. The Bunker is typical of the growth capital investments Foresight makes in UK SMEs; an exceptional management team, profitable, high growth, a growing global market and a sustainable competitive advantage.”

Peregrine Newton, CEO of The Bunker (until completion) added: "To be honest, we couldn’t have chosen a better partner than Foresight ten years ago when we were first looking for growth capital. Throughout the life of the business Foresight has been supportive and helpful during the good times and really tough times and together we have created a high quality business with integrity that has a great future ahead.”

Advisers on the transaction included:

Legal Adviser :                           Bird and Bird

Corporate Finance (sell side) :     Deloitte

Due Diligence :                           RSM



About Foresight Group LLP ("Foresight”):

Foresight is a leading independent infrastructure and private equity investment manager which has been managing investment funds on behalf of institutions and retail clients for more than 30 years.

Foresight has £2.6 billion of Assets Under Management across a number of funds, including Listed Vehicles, Limited Partnerships, Enterprise Investment Schemes (EISs) and Venture Capital Trusts (VCTs).

Foresight’s Private Equity team, comprising eighteen investment professionals, invests typically between £1m and £5m in management buy-outs, management buy-ins and growth capital investments in UK SMEs.

Foresight was voted “VCT House of the Year” at the 2016 Unquote British Private Equity awards.