The deal includes NFA’s sister company NFA Partnerships. Together, the two companies form the UK’s second-largest fostering agency, with 16 offices nationwide, according to Sovereign.

The existing management team, led by chief executive Iain Anderson, will continue to lead the company following the buy-out.

Sovereign Capital invested in NFA in 2006 and has grown the business through six acquisitions. It now has turnover of more than £60 million.

Anderson says the deal gives NFA ‘additional financial resources’ to increase the number of foster children placements. ‘We aim to partner with more local authorities across the UK,’ he adds.

Sovereign Capital partner Dominic Dalli comments, ‘NFA and NFA Partnerships have epitomised our sector-led, buy-and-build approach. We are proud of NFA’s reputation and management team, both of which have been key aspects identified by Graphite Capital.’