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Talent’s alternative to traditional private equity.

Redefining how private equity works for exit and scale proven leaders who are experts in their domains.

Register interest
  • Management earn >2x market standard
  • Target >30% IRR
  • Typically £1–15m equity
  • Off-market, non-competitive deals

The case for change

The traditional private equity market is broken.

  1. Private equity strategies have long carried allure for leaders looking to realise value and enhance their CV with an exit. But with such interest in sponsored roles, the industry has the power to underpay and often does.

    When you consider that minimum returns, equity waterfalls, priorities & subordination, charges & exceptionals are often all applied before management get paid, the already thin 13% can be eroded substantially; for those not in the CEO role this is even more acute.

  2. All funds raised are based on a clear investment thesis and the first job of any fund team is to find assets which fit that thesis.

    Typically circa 70% of the deals funds do are on-market and inherently therefore with competition & time constraints. It’s only after the purchase that the fund can plan its solution for management, but it’s only after the optimal management team is built that true value creation can start.

  3. 92% of funds are closed-end funds. These funds have a fixed period to deploy and return fund investors their money. Forcing growth and enhanced performance in a discrete period of time requires often very fundamental changes to invested businesses. Those demands become inflated further as the price paid for assets increases (an inherent downside of acquiring from on-market processes).

    In a 2019 study, private equity firms were found to have changed their CEO and CFO no fewer than 78% of the time before exit. Is that more likely a result of underperformance or unfair expectations? When management carry all of the risk, is it right that they also share in such a narrow portion of the rewards?

  4. With no credible alternative threatening private equity, there is no incentive to change. Whilst the market is ever more saturated with new funds, the fact they all operate with management in broadly the same fashion ensures the industry can continue to maintain a one-sided position which leaves management an unprotected and under-rewarded commodity.

    But it doesn’t need to be that way…

01 / 04

13%

the average equity award split between the management team*EY 34th Annual Private Equity Survey

Our approach

Independence Capital pioneer on five fronts.

By building for a targeted audience and shape of transaction, we have an almost unrivalled right to win when dealing with the best teams in the country.

  1. 01

    “Management First” operating model

    Before we buy any asset, we build the leadership team we want to enable. This is the opposite to how any traditional PE originates. Together, before we even identify an asset to acquire and build out, we craft a thesis solely bespoke to that team or leader’s experience of the market they are demonstrably experts in. That has a number of pay-offs which are enormously valuable.

    • Conviction in management
    • Day 1 alignment reduces wasted time
    • Accelerated cadence and focus post-acquisition
    Both deals lined up on the day they complete, and when value creation can start.

  2. 02

    Creating a niche currently overlooked by the industry

    Secondaries are traditionally synonymous with being the second Private Equity owner of a particular performing asset. We aim to become the de-facto sponsor of choice for management teams who are looking for “their” second exit: “the Management Secondary”. We truly believe that backing winners with deep domain expertise is a winning, repeatable and transferable strategy across companies, and by focusing on this narrow niche, we can tailor our operating model to meet solely the opportunities and challenges that are common to that.

    After a first exit, the industry follows the company. We follow the leader.

  3. 03

    Outcomes follow incentives

    Rather than focus on how management’s participation in the equity upside can be limited, caveated, controlled and subordinated, we believe wholeheartedly that management are the creators of primary value, and that by incentivising them to a level markedly beyond market standard, we will generate outsized net returns for investors.

    Net returns for investors against management’s share of the equity.

  4. 04

    Prospecting leaders from afar with proprietary technology

    By having the focus we do on who we serve and how we serve them, we have been able to build proprietary technology that allows us to identify prospective teams and leaders potentially years in advance. We make a selective number of bets each year on new teams and leaders, and our work in designing and planning for those allows us to predict what future years’ deployments are likely to entail and require. That underpins our fundraise activity, so that funding cycles are never a constraint for teams and leaders.

    Leaders across the market, picked out a year at a time up to five years ahead.

  5. 05

    Off-market transacting

    We believe that deep research is critical to the success of our buy-build journey and continue to invest in our own tooling, data and processes. This investment has enabled us to build a platform that allows us to identify and originate off-market transactions at scale and in novel multi-channel ways. An M&A process should never be constrained by undersupply of quality assets.

    Originating at volume ensures the best target, at the best price and structure, at the right time.

  • Independence

    0%

    of management teams backed remain in postno dismissals or restructures

    Traditional PE

    0%

    of management and leaders retain their role by the end of a PE cycle

    • 0%

      of deals completed off-market, direct with the vendor

    • 0%

      the targeted net IRR for investorson track to exceed this

    • 0yrs

      the pipeline for new strategies with leaders extends to

Valued by experts… in their words

  • “Having scaled and exited with private equity before, we knew that building our own group without traditional private equity was our aim. Independence have a unique proposition built exactly for our purpose and have been exceptional partners in helping us deliver on that dream. We have made great progress in a short space of time and wouldn’t hesitate to recommend Independence to other teams and leaders in our position.”
    Mark AllenExited for more than £200m
  • “Having worked with global blue-chips and mid-market private equity all my career, a lot of what we are doing with Independence I didn’t think was possible. They have proven to be a fantastic alternative and I really value their support.”
    Phil McClennonEx Global Strategy, Thyssenkrupp
  • “After exiting Verastar, I spent a lot of time talking to the market to find partners able to help on my next project. Independence were the only party I spoke to where there was very clear alignment of expertise, interest and risk. In the short time we have been working together they have made great progress originating and structuring off-market opportunities and I look forward to counting on their support as we build the group over the years ahead.”
    Alex HeslipExited for more than £400m
  • “When I first heard the Independence proposition it felt too good to be true. Having been kind enough to invest time with me to explore my ideas on a future thesis, I am delighted with the potential. I will be joining the Independence portfolio when my current exit vests in 2028.”
    ConfidentialCurrently leading a >£100m EV manufacturing secondary
  • “Independence have proven to be a great partner for our business and we really value their expertise. They have not only worked hard to learn about our business and support our needs, they have shared guidance on strategies which have collectively brought great value to the company, family and the team remaining within the business.”
    Richard SkelsonScaled family business 10x
  • “Independence were really helpful in supporting my first acquisition in the UK. In a new country and market, they helped me to successfully navigate a challenging vendor and their advisor and I am really pleased with how the acquisition has subsequently performed. I intend to work with them again in the future as the group looks for M&A buy-side support as part of its growth plans.”
    Craig SchweitzerEx Xerox MD
  • “Having worked with traditional private equity, I could easily relate to Independence’s differentiated offering. I have been extremely impressed by the quality and volume of off-market targets delivered and the depth of support available in structuring and strategy. Building a global group isn’t straightforward but Independence have fast become integral partners and I will recommend them to other teams and leaders.”
    Nic KyrzakosExited for Carlyle Group
  • “Me and my management team decided after our first success that we wanted to go again and assumed we would organically. After considering the Independence proposition I am quite sure that we will all go further, quicker together and with less risk, so working with Independence just makes sense. We can’t wait to start.”
    ConfidentialExited £60m EV, now waiting out a restrictive covenant
  • “I have enjoyed working with Independence and welcomed their support in helping to navigate some complex situations, good and bad. I would recommend them to other leaders looking to build their own group.”
    Simon WellingsExited for more than £1bn
  • “Independence helped give me the confidence to build my own group and have been exceptionally supportive throughout a tumultuous past three years. I wouldn’t hesitate to recommend them to other leaders and management teams.”
    Ian HowellEx Barclay Brothers MD
  • “Having sold our family business to a blue-chip company, we have experience of growing and running companies at both ends of the spectrum. When we started the Titan Packaging Group, what we didn’t have experience of was M&A outside of our own deal. Independence have been really helpful and insightful in working with us to explore what is possible in the market, and we continue to value their support in helping us to build our group over the coming years.”
    Jason InwoodExited to Bunzl

Register interest.

We are always open for business, always looking to support sector-leading talent and add to our ranks operating partners, investors and team members. Tell us a little about yourself and we will be in touch.

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