Key Capital Partners eyes Yorkshire deals as it continues to focus on growth SMEs

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KEY CAPITAL Partners is looking into two Yorkshire-based investments, as it continues its strategy for growth businesses.

The private equity firm launched in 2007, with backing from institutional investors including West Yorkshire Pension Fund.

Leeds-based investment partner Peter Armitage said the firm remains committed to its strategy of investing in small and medium-sized enterprises (SMEs) that are poised for growth.

Key Capital Partners serves the “huge gap” that opened up in the smaller buyout market - between £1m and £10m - and plans to “stay in that space”, Mr Armitage said.

The company, which has made 15 investments since its launch, is currently looking at two upcoming Yorkshire-based investments, with “more across the North”, Mr Armitage said.

It has already seen success through its deals with Hallam Medical, a recruitment business based in Sheffield, and York-based musical instrument etailer Gear4Music.

Since investing in healthcare recruiter Hallam Medical in April, the £13.5m turnover recruiter is expected to achieve £20m revenue in the current financial year.

Similar results have been seen at Gear4Music, which had £10m turnover in 2012 and is projected for £23m revenue in 2014/2015.

Paul Smith, CEO of Morses Club, said the group is well placed to grow amid the uncertainty caused by the EU referendum,

Profits and revenues up at doorstep lender Morses Club