The deal

Graphite backs management buyout to support future organic and acquisitive growth

Our Debt Advisory team has supported Graphite Capital (Graphite), a leading mid-market private equity firm, on its investment in Digital Space, a cloud managed services and technology platform provider.

Led by Partner Simon Sherliker, our team worked with Graphite to identify potential funding partners to support the firm’s investment in Digital Space as it backed a management buyout led by chief executive Neil Muller.

Digital Space provides services to UK mid-enterprise and public sectors. It supports 5,700 customers from its headquarters in Newark-on-Trent, an operational centre in Telford and an office in London, generating an annual turnover of £57.4 million.

Graphite approached FRP Corporate Finance in summer 2022 for its help facilitating the acquisition. Simon, with the support of Director Stuart Sweeney, Senior Manager Julie Lada and Manager Karris Giani, reviewed a range of potential lenders, identifying Kartesia as the partner of choice.

Our team then worked at pace to help structure the deal, secure credit approvals and negotiate terms, delivering financial backing that not only enabled Graphite to fund the management buyout, but which will also provide capital for it to support Digital Space’s future growth through organic expansion and future acquisitions.

Simon Sherliker, Debt Advisory Partner at FRP Corporate Finance, said: “We have formed a strong relationship with Graphite Capital in recent years, and are proud to have been able to assist them again in this exciting opportunity.

“The deal required us to move quickly and, by working closely with the teams at both Graphite and Kartesia, we were able to craft a solution that met Graphite’s day-one requirements and provided runway for further growth through acquisition. We’re excited to see where it and Digital Space go together next.”

Humphrey Baker, Senior Partner at Graphite Capital added: “FRP Corporate Finance was front-of-mind when considering partners for this deal, and Simon and his team have, once again, demonstrated their expertise in helping us secure a package that meets our needs and supports our future plans.

“Digital Space has a strong management team and great prospects. We’re excited to be working with the business on the next stage of its journey.”