YFM Equity Partners has supported the £10 million management buy-out (MBO) of business process outsourcing company Intelligent Office UK.

The investment firm has committed £5 million towards the deal, which has been closed so that the company can continue its growth strategy.

Intelligent Office provides its services to the legal sector and has a reported turnover of £14 million. According to the company, it is hoping to build on growth of 40 per cent in the last three years is expecting an increase of 21 per cent in the current financial year.

Rachel McCorry, chief executive of Intelligent Office and lead on the deal alongside head of business development Sam Nicholls, operations director Lorraine Cameron and financial controller Liam Bain, says that the business has had a 100 per cent increase in enquiries from UK top 50 law firms.

‘Pressure on fees for many law firms has increased their focus on reducing costs and creating greater efficiencies in their administrative functions,’ she adds.

‘Clients are particularly attracted by our ability to improve the cost of administrative service per fee earner by up to 52 per cent while improving service standards and freeing firms’ management to focus on their core business.’

More on YFM Equity Partners:

• Surveillance company Seven snaps up covert intelligence operator
• YFM Equity Partners exits Fishawack
• VC firm YFM supports Insider Technologies BIMBO

Margaret McPherson, who set up the company in 2011, is set to continue in her role as a director and remain a shareholder. As part of the MBO, Parcel2go chairman and former founder of MailSource James Greenbury has been brought in as a non-executive chairman.

Intelligent Office’s Managed Services division has customers including Wragge & Co and Capsticks, while its Transcription Services arm providing document production counts HBJ Gately and Boodle Hatfield as clients.

YFM Equity Partners investment director Giles Whitman comments, ‘Intelligent Office is a well-established, market-leading business with a great reputation and clear growth potential in a market that is increasingly acknowledging the benefits of outsourcing.

‘Clients are attracted by its focus on the legal sector, compelling efficiency benefits and the most secure transcription services offering in the UK market.’

YFM Equity Partners has had a slow start to 2014, with its two other deals, both being MBOs, involving bathing equipment for the elderly business Manger in February and industrial valves company Leengate Valves in January. The firm also launched a new fundraising for its British Smaller Companies VCTs (venture capital trusts).