We're thrilled to announce our investment in CMap, a market-leading provider of professional services automation (PSA) software.
Manchester-headquartered CMap has grown rapidly due to the fast-growing global demand for PSA software and its highly verticalised strategy. CMap specialises in the AEC and consulting sectors, helping companies increase project profitability, manage staff utilisation, and forecast with confidence.
ECI will support CMap to invest in its team, deepen its presence within the AEC and consulting markets, continue its international growth, and accelerate its product roadmap to further improve its customer offering.
News
04/11/2024
Read Time: Min
ECI invests in CMap for next stage of growth
In the latest edition of our valuing digital marketplace videos, Isa Maidan discusses supply-side resilience and the key factors you can use to demonstrate to investors the value and resilience of your marketplace.
A marketplace's resilience on the supply side impacts how it's affected by the ups and downs of the economy. This, in turn, impacts its valuation. Isa looks at some of the elements private equity firms are most likely to assess, including:
- How key your sales channel is to suppliers
- Fragmentation of supplier base
- Differentiation of supply
Video: supply side resilience
Insights
01/11/2024
Isa Maidan
Read Time: Min
Valuing digital marketplaces: demonstrating supply side resilience
We're delighted to announce our investment in Croud, the global full-service digital marketing company. This investment sees ECI take a majority stake in the business, enabling Croud's leadership team to continue scaling as a global leader in digital-first, tech-enabled marketing over the next five years.
Following a highly competitive selection process, ECI was chosen as the ideal partner for Croud’s next stage of growth, with a clear alignment of ambitions and values and a successful track record in media, data and technology investments including MiQ, Investis Digital, Imagesound and Clarity Blue.
In partnership with ECI, Croud is set to expand the business through further acquisitions and organic growth. The investment will enable Croud to retain its leadership in media, data and creative services benefiting current clients, such as Amazon Prime, Aston Martin, Coach, Nespresso and the VF Group (including Timberland), who will continue to access the most competitive marketing capabilities.
The transaction marks an exit for LDC, following a successful five-year partnership with its threefold growth attributed to:
- A disruptive operating model conceived at Croud’s inception. This includes the Croudie Network, a global marketplace of 2,900 digital marketing domain experts. They deliver, alongside Croud’s in-house digital marketing specialists, cost-efficient resourcing and flexibility. Enabled by Croud Control, a proprietary tech platform delivering AI-powered planning, workflows, automation and execution of digital marketing campaigns.
- Geographical expansion with Croud’s rapid growth in the US market under the leadership of Kris Tait, US MD and Dean Gardner US COO, driven by major account wins including Nespresso, and the recent Vert Digital acquisition (Atlanta-based digital media agency) growing Croud’s US footprint.
- Portfolio breadth, with the acquisition of Born Social and its strong leadership under Ben Tyson, CEO, and Charlotte Hamill, COO. The award-winning social-first creative agency has gone on to win prestigious clients such as Barclays and Ford, as well as expanding its Diageo relationship with Smirnoff in the US and achieved a 45% CAGR since its acquisition.
- Acquisition and successful integration of acquired media, data and technology companies, such as Impakt Advisors (data advisory) and Metageni (a leading attribution services and platform provider) to accelerate the growth of Croud’s marketing technology business.
Core to delivering this strategy has been the experienced leadership of the business. Last year the company appointed Avinash Kaushik, the Google Senior Executive, as Global Chief Strategy Officer and Board Director. More recently the company appointed Rick Stallings as its first Global Chief Data Officer, and Dani Jordan as its first Chief Marketing & Integration Officer.
The deal, which exchanged in October will complete next month.
News
31/10/2024
Read Time: Min
ECI backs Croud’s ambitious global growth
We're pleased to announce our investment in Independent Governance Group (IGG), the UK’s leading provider of professional pensions trusteeship and governance services.
IGG was founded in February 2023 following the merger of two long-established firms, Ross Trustees and Independent Trustee Services (ITS), creating a singular destination for best-in-class professional pensions trusteeship, scheme secretarial, pensions managerial and governance services.
Today, IGG employs more than 200 people and its focus on an integrated approach with clients has won it 13 industry awards over the last three years. The business provides professional services to 386 pension schemes with total scheme assets of £324bn.
Over the last 18 months, IGG has established a strong regional presence in Bristol, Birmingham, Edinburgh and Manchester alongside its London headquarters. In the process, it has added pensions and employee benefits communications and investment governance expertise to its core services, delivered under the Like Minds and IC Select brands respectively.
IGG has also invested in significant product and service innovation to help trustee boards fulfil their responsibilities to scheme sponsors and members. This includes the launch of IGGiQ, a proprietary SaaS platform that provides holistic, real-time analysis of a scheme’s investment performance, and the introduction of IGGnite, its consolidated governance model for small pension schemes.
IGG’s commitment to sustainability saw the launch of its Sustainability Charter last year, setting out commitments to work with schemes and industry to promote and drive responsible investment, as well as ensuring the long-term interests of members are best served.
Advisors to ECI: PwC (Corporate Finance & Commercial Due Diligence), Squire Patton Boggs (Legal), A&M (Financial Due Diligence) & Clearwater (Debt Advisory)
Advisors to LDC and IGG: KPMG (Corporate Finance),PwC (Financial, Commercial and Tax Due Diligence), Gateley (Legal); Eversheds (Management Legal) or Liberty (Management Corporate Finance)
Debt financing provided by Crescent Credit Europe
News
30/10/2024
Read Time: Min
ECI invests in Independent Governance Group
Before summer even got going, it's now almost Halloween! So as the nights draw in and the mercury drops, it's a great time to start a new book. For inspiration, here’s what the ECI team are reading as we start to enjoy the season of long shadows.
Louis Jans
The Year of the Locust, by Terry Hayes
This is Terry Hayes’s highly anticipated second book, following my all-time favourite fiction novel “I am Pilgrim”, published in 2013 and I was extremely excited to read it.
It’s a modern day spy novel where a secret agent is tasked with chasing down a highly trained and intelligent “super terrorist” across the globe. It’s a real nail biter that you don’t want to put down, so you’ll get through the 700 pages in no time.
The Year of the Locust is a very good read that I enjoyed immensely, but in my opinion, it fell just short of the very high bar set by I am Pilgrim. If you’re into fiction/spy novels, both books are great, but if you do have to choose one, go with Hayes’ first.
Christy Welsh
The Psychology of Money by Morgan Hansel
The Psychology of Money by Morgan Housel is a refreshing departure from traditional finance books, which often emphasise technical, maths-based strategies for building wealth. Instead, Housel focuses on the human side of money, exploring how personal experiences, emotions, and perceptions shape our financial decisions and success.
Through 20 concise, insightful chapters, he presents key psychological principles - many of them counterintuitive - that influence how we think about and manage money. The book's engaging anecdotes and accessible storytelling make complex ideas relatable, leaving a lasting impression long after you've finished reading.
George Moss
Shantaram by Gregory David Roberts
Shantaram by Gregory David Roberts is an epic novel based on the author's extraordinary real-life experiences. The story follows Lin, an escaped Australian convict who flees to Mumbai, in search of freedom and reinvention. Once immersed in the vibrant and hectic city, Lin forms deep connections with locals, navigates the criminal underworld, and even finds himself living in a slum.
The book captures the rich, contrasting tapestry of India - its beauty, poverty, spirituality, and corruption. With a blend of action, philosophy, and romance, Shantaram explores themes of redemption, the human condition, and the moral complexities of life. At nearly 1,000 pages, it’s an immersive read, offering a mix of thriller and introspective reflection. If you enjoy vivid character development and complex cultural settings, you’ll love this book as Roberts’ writing is both poetic and gritty, making it a compelling adventure for those seeking depth and escapism.
Brett Pentz
The Forever Dog by Rodney Habib and Dr. Karen Shaw Becker
The Forever Dog by Rodney Habib and Dr. Karen Shaw Becker offers a science-driven guide to extending the lifespan and health of your canine companion (and is reminiscent of our successful investment in MPM). Drawing on the latest medical research, the book delves into key factors that influence dog health, including diet, physical activity, stress management, and the importance of social interaction.
Habib and Becker advocate for a proactive approach, encouraging pet owners to adopt healthy practices, such as integrating nutrient-rich foods and supplements into their dog’s diet and addressing lifestyle factors that can prevent disease. The book also highlights the emotional and practical bonds we share with our pets, which I’ve seen first-hand with my well-travelled 13-year-old Beagle mix who has lived in both the US and UK. For business owners, particularly in the pet food and wellness sectors, the book offers valuable insights into emerging trends. Overall, The Forever Dog provides a thoughtful roadmap to ensuring a longer, healthier life for beloved pets – I’ll let you know its efficacy when my dog hits 15 or maybe even 20 years old!
David Shiel
Unruly by David Mitchell
If you think you know England's monarchs you might be in for an hilarious history lesson. In Unruly, David Mitchell uses his sardonic style and throws out the stuffy textbook approach to reveal a side of English royalty you never expected. Forget stoic leaders – Mitchell paints them as a motley crew of lucky, sometimes downright bizarre characters.
From the non-existent King Arthur to the appropriately named King Cnut, he wittily describes power struggles, treachery and bizarre deaths as he dismantles the myth of the infallible monarch. He reminds us that history is often funnier – and messier – than we imagine in an entertaining tour through England's unruly past.
Insights
24/10/2024
Read Time: Min
What are ECI reading? Our autumn reading list:
Commify, the global leader in business messaging solutions to Local Enterprises, announced its further expansion in the US with the acquisition of Tennessee-based Text Request. The acquisition is Commify’s 18th since 2013 and its second since our investment.
ECI invested in Commify in 2023, valuing the business at €300 million, and the acquisition represents Commify’s biggest investment to date, further demonstrating our commitment to growing and scaling its international presence.
Text Request, founded in 2014, is a SaaS platform that provides a plug and play texting service, including conversational and customer engagement messaging solutions to small and medium sized businesses across the US. The business has scaled rapidly, growing at 60% a year from 2021 to 2024 and is approaching $15m ARR and $20m total revenue. Text Request serves over 7,500 loyal customers, won and grown through best-in-class digital marketing and exceptional local service from a team of 40, based in Chattanooga, Tennessee. For the past four years it has been included in the Inc. 5,000 Fastest Growing Companies and is certified as a Great Place to Work.
News
16/10/2024
Read Time: Min
Commify strengthens US expansion with the acquisition of Text Request
For the businesses we partner with, a strategic acquisition is often a critical step in entering a new geography. But the acquisition is only the start of the journey. An excellent example of this is Peoplesafe’s acquisition of Ok Alone.
Peoplesafe is an industry-leading, technology-led employee safety business and the world’s largest provider of lone-working solutions. While Peoplesafe knew that the UK was the largest market for lone worker safety solutions, they understood their need to internationalise – specifically into Canada and the US where the most significant future market growth is forecast. This led to the successful acquisition of Ok Alone in August 2023, but what went into developing a North American growth strategy to deliver further growth from the combined business – before and after the acquisition?
Where to invest time and resource across a vast geography
Peoplesafe recognised a need to have a North American growth plan ready ahead of the acquisition, so they tasked ECI’s New York office with the research to inform that plan. A key objective was determining which geographies and customer end markets would provide the best return on commercial investment.
Questions that we addressed to determine where to focus included:
- Where and what types of customers make up North American revenue today for Ok Alone and competitors?
- How many addressable customers exist across different combinations of target industries and geographies?
- Where is the most interest in lone worker safety solutions by relevant keywords and search terms for marketing?
- Where do relevant regulations, professional associations, and key events exist to promote lone worker solutions?
Based on our findings, we prioritised which US states and Canadian provinces to target along with the industries most interested in lone worker solutions. Importantly, once we developed this list of geographies and end markets, we could tailor the findings to develop a plan for digital marketing investments, industry associations and events to attend, and lists of business development targets for outreach.
Implementing the strategy
With the strategy in place to establish our commercial focus and plans for growth, the team progressed to implementation with steps that included:
- Recruiting a US sales leader and mapping all business development territory/sector combinations across the sales team
- Joining target associations and attending relevant events
- Enhancing product features, marketing collateral, and pricing to reflect research findings
- Investing in digital marketing and public relations in prioritised areas
- Building out a North American approach to tracking requests for proposals and tenders
- Refining partnership processes and approach
This is now all in place with forecast activities, spend, and deadlines detailed for the remainder of the year.
Net recurring monthly revenue doubled
With the whole team pulling in the same direction, the benefits of a comprehensive go-to-market approach are now being realised.
To date, the business has seen a 40% increase in inbound leads through the focused digital marketing efforts that the research suggested. As a result, net recurring monthly revenue in North America has doubled over the last 12 months through additional sales to both existing customers and new logos – even faster than the historical 40% recurring revenue growth the business has demonstrated.
There remains a lot to learn, especially as Peoplesafe looks to educate a nascent American lone worker market, and they may need to refine their approach from these lessons, but the results so far show the value that a clear research programme can deliver – and we expect to be able to share even better results in the months to come.
Insights
08/10/2024
Brett Pentz
Read Time: Min
How Peoplesafe doubled recurring revenue in a new geography
In our latest Quick Fire, we sat down with Tamsin Webster, ECI’s Head of People, to discuss her experience joining the team, how HR has evolved and the most important trait needed for working in people management.
Q: You’ve been at ECI for three months now. Has it been as expected?
Yes, definitely. I’ve worked with investment professionals for most of my career, so I had a good sense of the environment and the type of people I’d be working with.
The interview process was also very thorough and included a case study response. The leadership team was very engaged during the different stages, and their collaborative style reflects exactly what I’ve encountered since joining. The whole interview process gave me a good picture of what to expect, and I chose ECI as a result. I’m glad to say that reality is completely aligned with my expectations.
Q: What does your role as Head of People entail?
At the moment, my focus is on ECI internally, rather than directly working with our portfolio companies. I’ll be building on the established processes and systems - recruitment, performance management, feedback and development - as well as maintaining and evolving our culture.
I’m also starting to build ways to help our Investment Team so they have the best tools / processes available to support their portfolio companies. They balance multiple roles in the investment cycle with each phase requiring different skills, and I’ll be looking to create tools to make sure they have everything they need to navigate all the stages confidently.
Q: What challenges do mid-market companies face when it comes to people management?
One of the biggest challenges is that mid-market companies don’t have the brand recognition of larger corporations, so they need to work harder to attract top talent, and in a more competitive market, need to offer something compelling. This isn’t just about salary or benefits but the entire experience, from the first interview to onboarding and beyond. Candidates need to feel connected to the company’s vision and growth story, which can be a unique selling point for smaller businesses.
Once hired, it’s about making sure employees feel engaged and valued, especially as the company grows and evolves. Creating a strong, personalised experience for employees can go a long way in retaining top talent in the long term.
Q: How has HR evolved since the pandemic?
The pandemic accelerated changes that were already underway in the HR world. The shift to remote work and flexible schedules pushed companies to think more about employee wellbeing, productivity, and engagement in new ways. The traditional employer-employee dynamic has shifted from being very much employer-driven, to more employee-driven, and the pandemic sped up that transition.
The talent market has also opened up geographically. Now, companies can tap into talent from anywhere, which brings its own set of challenges and opportunities. There’s more on the HR agenda than ever before, and the nuances of managing people have become more complex. It’s no longer just about policies and procedures, but about creating an environment that takes individual needs into account while maintaining alignment with business goals.
Q: What’s the most important trait for working in HR?
Balance. As Head of People, I often sit in the middle of multiple perspectives: the employees, the leadership team, and the business as a whole. You have to understand the needs of each group and find a solution that works for everyone while ensuring the long-term success of the business.
It’s also important to be confident and be able to influence. Sometimes, you need to challenge the status quo or push back on decisions, but always in a way that brings people along on the journey.
Q: What do you enjoy most about working in people management?
I love that I can directly add value to the business every day. Whether it’s solving a problem, helping someone develop a new skill, or making sure the right person joins the team, I know I’m making a tangible difference. For me, it’s not about just making people happy—it’s about driving results that benefit both the business and its people.
Quick Fire with Tamsin:
What do you do to unwind?
I’ve been working on a garden project for the past three years, so I spend most of my free time gardening and growing vegetables. I also have a dog, so between him and the garden, I’m pretty busy!
Favourite film?
It would have to be a favourite genre - sci-fi. There’s something about the storytelling that resonates with me.
Who’s inspired you the most?
At every key milestone in my career, I've been lucky to have amazing bosses who showed me what a role model could be. Importantly teaching me how to understand what people need, what their motivations are, and then, alter my narrative as necessary to bring people on the journey.
What’s the best advice you’ve received?
Be patient. My natural style is to get things done. I’m very action-orientated and results driven, but sometimes patience is important to get the right answers and bring people with you.
What’s your superpower?
I have a knack for connecting seemingly unrelated dots and coming up with creative solutions to problems that others might not see.