The former management team of Ithaca Business Media has secured £7 million from NVM Private Equity to fund a new business. CloserStill Holdings has been created to purchase mid-sized exhibitions and event businesses, which the management believes it can sell on to larger players.

The former management team of Ithaca Business Media has secured £7 million from NVM Private Equity to fund a new business. CloserStill Holdings has been created to purchase mid-sized exhibitions and event businesses, which the management believes it can sell on to larger players.

According to NVM, which backed Ithaca Business Media’s management buy-out (MBO) in 2005, there is currently an appetite in the events industry to acquire exhibitions and event businesses, but a dearth of target companies due to recent consolidation in the sector.

The venture capitalist has invested £4 million initially, making a further £3 million available to fund acquisitions. CloserStill envisage making up to ten acquisitions over the next three years. No bank debt was raised in connection with the funding.

The new management team is headed by Andy Center, ex-CEO of Ithaca and Phil Soar, ex-chairman of Ithaca. It also includes Phil Nelson and Michael Westcott, the respective heads of Ithaca’s flagship exhibitions Internet World and Leisure Industry Week.

Ithaca, a business-to-business exhibition, events and media group, was acquired by NVM in April 2005 and sold in September 2007 to United Business Media for £14.25 million, earning an IRR of more than 60 per cent per annum.