Raising capital

Benefex

Adviser to Benefex on their growth capital investment from the Business Growth Fund.

The deal

Our Corporate Finance team has successfully led the raising of growth capital for Benefex in a deal involving the first ever investment by the Business Growth Fund. The BGF has invested £4.2m of development capital and will take a minority stake after being introduced to the business by the team who were retained by Benefex to raise capital to fund exciting new growth opportunities. Ian Milne and Simon Davies led the deal from the team.

Based in Southampton, London, and Marlow, Benefex is a leading provider of online employee reward and benefit schemes. Benefex enables large organisations to tailor its rewards and benefit packages to individual employees, communicate effectively online with staff, and outsource administration and support of its schemes. From start-up in 2003 Benefex has grown to become one of the largest online employee reward and benefits providers in the UK, currently employing 73 staff.

Recognising that the business had reached the point where external capital was required to take it to the next level and to capitalise on new growth opportunities, Benefex approached the team to advise and support them in attracting a development capital investor. Working closely with Matt Waller, Chief Executive Officer and Giles Elliott, who had been brought in as Chief Financial Officer to help position Benefex for the fundraising, the team conducted an extensive business analysis, planning and presentation exercise generating considerable interest from a number of private equity investors in a competitive process. the team’s knowledge of private equity and extensive contacts allied to a strong track record in raising capital were key factors in their involvement and in the successful conclusion of the project.

“We were extremely pleased with the service received from the team and for their support through every step of the process. Having grown the business from start-up it was critical for us to find the right partner to move forward with. Key to this was the team’s deep knowledge of the private equity markets and their ability to introduce us to a number of potential investors who shared our enthusiasm and ambition for the market opportunity, and could work alongside our team to add value. We are excited to have the BGF as an investor in Benefex and very grateful to the team for making this happen.” Matt Waller, the CEO at Benefex and the first entrepreneur to be backed by the BGF.

“We were very grateful to the team for the introduction to Benefex and the key part they played in bringing the investment to a timely and successful conclusion. We look forward to working with the team at Benefex to create the world’s leading provider of online employee rewards and benefits. This is the first of many investments that we will be making in fast growing UK businesses and we also look forward to working with the team ton other opportunities.” Paul Oldham, BGF regional director for the South West and Wales.

Deal summary

Sector:

Business Services

Deal type:

Capital Raising

Deal size:

£4.2 million

We were extremely pleased with the service received from the team and for their support through every step of the process. Matt Waller CEO at Benefex and the first entrpeneur to be backed by the BFG

Related team

Ian Milne

Ian Milne

  • Partner
  • Debt Advisory
  • London West End, Reading

Simon Davies

Simon Davies

  • Partner
  • Corporate Finance
  • Reading, London West End

Related deals

Technology, media & telecoms

FourNet

Adviser to the management team of FourNet on the MBO, backed by Palatine Private Equity.

Business services

ELAB

Adviser to ELAB, an environmental process safety company, on its sale to Cawood Scientific.

Technology, media & telecoms

FourNet

Adviser to Palatine Private Equity in their acquisition of FourNet.