Private equity investor Dunedin has sold professional services firm Blackrock Programme Management to its management team for an enterprise value for £161.5 million.
The exit achieved 2.8x money for Dunedin after two years and four months and represents a 60% IRR.
Blackrock PM, which is based in London, provides construction consulting and expert witness services for large, international construction and engineering projects. Past projects include the Shard in London and the Burj Khalifa in Dubai.
Dunedin invested in Blackrock PM at the end of March 2015 and since then the business has grown substantially, doubling the number of testifying experts in its team. It also expanded overseas into the Middle East, Africa, Europe and Asia, increasing its international sales by 221% during Dunedin’s investment period.
As a result revenue has tripled from £9 million in 2014 to £26 million for the financial year ending October 2016.
The transaction is Dunedin’s second exit this year, following the sale of Steeper Holdings in February 2017.
Simon Rowan, Partner at Dunedin, said: “The key to Blackrock PM’s exceptional growth over the last two years has been its commitment to developing genuine world class expertise. It is a great example of a business successfully exporting first rate professional services to overseas markets. The professionalism, energy and culture at Blackrock sets it apart from the competition and will ensure it remains on course for future success. We wish the team the very best as they embark on the next chapter of their growth story.”
Blackrock PM’s founder, David Barry, said: “During our partnership with Dunedin, we have transformed the company from a boutique consulting practice that was reliant on a small number of experts to a forensic consulting business with real critical mass, capable of handling the largest and most complex projects across the globe. Blackrock now has 23 expert witnesses as well as a large and highly skilled team of support professionals.”
The transaction was supported with debt and equity financial support from Intermediate Capital Group.