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Nabarro advises on management buy-out at Human Capital Investment Group

27 November 2014

This article was produced by Nabarro LLP, which joined CMS on 1 May 2017.

Nabarro has advised the management team and certain selling shareholders on the management buy-out of boutique specialist recruitment business, Human Capital Investment Group, backed by Graphite Capital, a leading mid-market private equity firm.

Human Capital Investment Group (HCIG) is made up of boutique specialist recruitment businesses covering four core sectors (Health and Social Care, Public Sector and Not-for-Profit, Engineering and the Built Environment). Established in 2007, HCIG invests in recruitment businesses in the UK and internationally, and aims to buy and build the best in class companies. It has a diverse portfolio of fast growth, high performing niche recruitment agencies which includes leading brands such as Eden Brown, Resourcing Group, Caritas Recruitment, The Synergy Group, Proactive Technical Recruitment, ewi, Financial Resourcing Group, AlphaTec Consulting, Butler Rose, Retinue, Apollo Nursing, and Attenti.

The MBO was led by Tim Cook, Group CEO, supported by Adam Herron, Group COO and Michael Sterling, Group FD, all of whom will remain in place together with the existing management of HCIG’s trading companies.

Commenting on the MBO, Cook noted: “Graphite Capital is a natural partner to HCIG as they have a true understanding of the recruitment sector which will assist us in continuing the exciting expansion of the group. Graphite will also give the company access to capital for potential acquisitions.”

The Nabarro team was led by Corporate partner Alasdair Steele and Corporate associates Sarah Etherington and Elliot Jackson and included Tax partner Graham Muir and associate Andrew Brooker together with partner Richard Brown and associate Andy Graham from the Employment team. Macfarlanes advised Graphite Capital and DAC Beachcroft advised the remaining selling shareholders of HCIG.

Commenting on the transaction, partner Alasdair Steele said:

"HCIG's portfolio of established and start-up specialist recruitment businesses made this both a very interesting and complex transaction. We wish Tim Cook and his team well and look forward to working together in the future as they progress to the next stage of HCIG's growth story."