Portfolio company Solfex Energy Systems has been sold by Panoramic Growth Equity netting the firm an IRR of 62 per cent.
Equity investor Panoramic Growth Equity has exited its interest in renewable energy distribution business Solfex Energy Systems through a deal with Travis Perkins.
By selling Solfex for an undisclosed amount, Panoramic has generated a reported IRR of 62 per cent following a 16-month involvement with the energy business.
Solfex provides renewable energy systems to customers including installers, building merchants, housing associations and large-scale renewable scheme developers.
The firm first invested in Solfex in September 2011 when it injected £1.25 million. By adding an earn-out, Panoramic is expecting to increase its IRR to 120 per cent.
According to a statement, Panoramic’s backing of Lancashire-based Solfex has seen the company increase profitability ‘substantially’, while turnover has reportedly grown from £5 million to £22 million.
Solfex managing director and co-founder Stuart Cooper says that Panoramic’s involvement has allowed the energy company to triple the size of its team.
‘We know our business and market well but we lacked experience in building the infrastructure to support such rapid growth,’ Cooper adds.
‘[Panoramic] gave us access to their network of contacts and provided significant input into our marketing strategies and day-to-day management decisions – their expertise in building many businesses, working in partnership with us as a management team and strategic guidance enabled us to do things better.’
The deal for Panoramic represents the first exit the firm has completed form its Panoramic Enterprise Capital Fund I, which reached a final close in September 2010 at a level of £34 million.
Panoramic partner Malcolm Kpedekpo comments, ‘Solfex is a fantastic business that has achieved impressive growth in a short timeframe and is a shining example of a management team who know their market inside out.
‘Further exciting new opportunities exist for this market leading business to utilise the high growth opportunities that lie within the UK’s renewable energy sector as part of the wider Travis Perkins group.’