YFM Equity Partners has backed the management team of Selima through a £2 million management buy-in (MBI).

The business, which supplies payroll, human resources and expenses software, was established in 1983 and has customers including Bristol City Council and Young’s Brewery. The deal sees the existing management team acquire a majority stake in the company, with previous managing director Mark Kinnell retaining a minority stake.

Leading the deal for Selima is a team including managing director Wayne Blackmore, sales and marketing director Michael Perry, chairman Richard Beaton and financial director Jane Mercer.

For YFM Equity Partners the MBI marks a busy start to 2012, with deals involving Peckforton Pharmaceuticals and Castlerock Recruitment Group having already been completed since the turn of the year.

The firm is joining the management team through the transaction as part of its British Smaller Companies VCTs. The newly allocated funds will be used to expand the business through improving its customer services for clients and the introduction of new products.

Ian Waterfield, investment manager at YFM Equity Partners, comments, ‘We know the management team well, having backed Richard Beaton and Jane Mercer twice before.

‘We believe there is enormous potential for the business to expand into existing new markets.’