We are a UK-based Investment firm that has raised committed capital from a small group of institutional investors.
Since our launch in December 2019, we have acquired small and medium-sized UK headquartered businesses from a number of leading global corporations. Inspirit has a strong track record of executing the carve-out process and reinvigorating the divested businesses into standalone, entrepreneurial organisations (Inspirit = verb: to infuse spirit or life into; enliven).
We are backed by a small group of institutional investors, and are currently deploying Inspirit Fund I and Inspirit Fund II, which were raised in December 2019 & July 2023 respectively. The partners of Inspirit are also investors in the fund, thereby ensuring our interests are aligned with external investors and portfolio company teams.
We seek to adopt a straightforward approach that is built upon forging partnerships with management teams, corporate vendors and other key stakeholders. We strive for operational excellence by balancing repeatable processes with entrepreneurial flexibility. We are committed to investing responsibly in businesses that thrive beyond our period of ownership.
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We pride ourselves on short lines of decision-making, which we believe is important to maintain expediency and build confidence in our ability to deliver – be it on transactions or in our dealings with management teams. We believe that developing a reputation for doing what we say we will do (and won’t do) builds trust and a sustainable competitive advantage in the long-term.
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We believe in a partnership approach with management teams, corporate vendors and other key stakeholders. We look to develop a tribal spirit with the portfolio management teams that we back, and we are collegiate in our decision-making process. We are resolute in times of challenge or change and adopt a ‘no blame’ culture. We maintain a positive attitude and ‘roll our sleeves up’ mentality which we believe creates happier teams and breeds ongoing success. Partnering with vendors to deliver effective and rapid separation plans or on post-sale supply agreements ensures a smoother transition.
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Inspirit has developed repeatable processes that we apply to improve the strategic position and operational performance of our portfolio companies. Whilst we are there to lay the groundwork, we also recognise the need for flexibility and do not believe there is a ‘one size fits all’ approach. Management teams will have their own style and approach and the best strategies will draw from Inspirit’s and management’s combined experience. Our level of involvement will always depend on the situation but we will not seek to become involved in the day-to-day running of the company. We will always offer pro-active support to deliver mission-critical changes, as well as navigate the road ahead.
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Environmental, Social, and Governance responsibilities are at the forefront of our decision-making and investment policies. We adhere to the UN principles for responsible investment and maintain an investment ‘exclusion list’ of sectors we will not invest in. We have a third-party rating system on all of our portfolio companies to ensure that our activity and investment has a positive impact on our portfolio businesses and the communities that they serve. It’s important to us that the businesses we invest in thrive beyond our period of ownership.
We target investments into small and medium-sized UK-headquartered businesses being divested by large corporations, be it due to underperformance, no longer being core to the parent company’s strategic objectives or to remedy competition concerns.
Inspirit has successfully executed carve-out transactions with a range of major international corporations, be it share or asset sales. Irrespective of the carve-out complexity, we provide vendors with transaction certainty in a short timeframe, thereby enabling management to focus on the day-to-day running of their business.
With our expert network of operational carve-out specialists, we aim to be reliable partner to vendors, both during the separation period and over the long-term if trading arrangements continue. We understand the PR sensitivities associated with divestment processes and will always seek to tailor the market messaging to the vendor’s needs.
We have no specific industry sector focus, nor do we seek to ‘cherry pick’ where a portfolio of assets is being divested. This is why many M&A advisory firms have selected Inspirit (on a repeat basis in some cases) as a discreet and ‘trusted solution’ for their clients’ corporate divestments.
Recognising each carve-out situation is different, we are not restricted by minimum cheque sizes or revenue targets. This is particularly the case with bolt-on investments, which may not be carve-out transactions. Nevertheless, our target opportunities will typically need to meet the following criteria:
revenue greater than GBP 20million
Up to GBP 50million
Potentially with operating divisions outside of the UK
Typically through majority equity ownership
Up to 5 years
Through resolution of strategic, operational or financial complexities