FPE Capital

What is FPE Capital?

FPE Capital is a London-based private equity firm with a sharp focus on investing in businesses in the UK's lower middle-market, particularly those operating within the software, data, and software services sectors.

They dedicate their approach to 'second-stage growth', concentrating on companies that have already achieved early success without significant external capital injection and are ready for a growth journey backed by strategic focus and investment in people, products, and processes.

The firms they target are product-or service-led businesses with proven, profitable business models. FPE Capital looks for companies that have a product-market fit with attractive unit economics, including product-led businesses with over £4 million in revenue or service-led businesses with EBITDA above £1 million. They place importance on an established reputation in the market, strong gross margins with low capital investment requirements, and an ambitious management team ready for evolution.

Their geographical focus is not just limited to countries generating domestic revenues but also extends to companies that have some UK or Ireland market exposure with local management teams. Operating with committed funds, FPE Capital invests equity ranging from £5 million to £25 million based on collaboratively developed three-to-five-year growth plans and can provide additional support for companies that grow beyond this range.

They take a flexible approach to structuring investments, often being the first institutional investor alongside founders. Their investments include a mix of capital to buy out existing shareholders to de-risk them, and funding for growth or acquisitions.

FPE Capital can take either minority or majority stakes, typically being the only institutional investor with board representation, and their shareholding ranges between 30% and 90%.

Their sector expertise and extensive track record spanning multiple economic cycles enable them to effectively support businesses through various conditions for sustained, profitable growth. They work with a select number of companies and, once committed, they are 'all in' as a partner for success, demonstrating a shared ambition and a relationship-driven, personal partnership approach.