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.

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