UK-based investment firm Palatine Private Equity bought a GBP 16 million minority stake in social housing contractor Forrest. Palatine placed the investment to support the secondary management buyout of Bolton-based Forrest. Palatine's second Fund bought the stake from LDC, a private equity firm owned by Lloyds Banking Group. As a result of the deal, LDC made a partial exit of Forrest. However, together with Palatine, both private equity companies would hold a combined majority share in the business. The transaction was the fourth investment made by Palatine's Fund II, which recently gathered GBP 150 million at the close of its fundraising round in June.
Forrest provides refurbishment and maintenance services to the social housing market located in the North of England. Last year, it saw sales increase by nearly 50%.
Forrest CEO Lee McCarren said LDC had supported the company's initiatives for the past six years. He added, "With Palatine alongside us as an additional investor, we can continue to drive improvements in the quality of our customer service offering, as well as developing more new and complementary service lines. This on-going strategy has been the key to our many consecutive years' growth and to our strong, long-term customer relationships."
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