Dow Schofield Watts Corporate Finance in Yorkshire & North East advises Operam Education’s Management Team on investment by Three Hills, providing a successful exit for BGF.
Founded in 2017 by CEO Eddie Austin, Operam specialises in the acquisition and growth of education recruitment agencies and high-value service offerings, providing staffing solutions to state schools that are faced with the greatest need for flexible resources.
Operam has grown rapidly since its inception, driven by the successful implementation of a strategic M&A strategy, with eight acquisitions completed to date.
The deal has generated a 2.5x return for BGF, which originally backed Operam in February 2019 following an introduction by DSW. During the past five years, BGF has provided £7 million of funding over multiple rounds to support ‘phase 1’ of the Management Team’s ambitious buy-and-build strategy.
As part of ‘phase two’, Three Hills, a private markets investor and certified B Corporation, will invest in Operam through its Three Hills Impact Fund – an SFDR Article 9 fund which employs thematic objectives aligned with UN Sustainable Development Goals.
Commenting on the exit, CEO and co-founder, Eddie Austin said: “It’s important to recognise and thank BGF, and in particular the Yorkshire-based investment team, for all its support over the last five years and for backing my original vision. They have been a supportive and patient investment partner, and it is a testament to their belief in the business and investment model that they have chosen to go again with Operam on the next leg of its journey.”
The partnership with Three Hills marks an important milestone for Operam as we look to accelerate our growth and cement our commitment to the UK’s education sector.”
BGF Investor Rob Johnson added: “Eddie and the team have rewritten the rule book when it comes to executing a successful buy-and-build. I am delighted that we have been able to reach this landmark milestone on Operam’s growth journey together. Operam is a great example of the power of patient capital, an entrepreneurial vision and a market opportunity to do things a bit differently.
I have no doubt the business will continue to go from strength to strength with the additional support that Three Hills will bring, allowing Operam to support even more schools and pupils by creating capacity in the classroom.”
The advice to the Management Team was led by Paul Herriott, Roger Esler, and Matt Spence of DSW’s Yorkshire & North East Corporate Finance Team.
Commenting on the deal, Corporate Finance Partner Paul Herriott said, “DSW is proud to have worked with Eddie Austin and Operam since the Company’s inception, over 7 years ago, through multiple equity and debt fund raises and supporting the buy-and-build strategy. This deal reflects the vision, hard work and dedication that Eddie and the team have shown in building a differentiated business of scale and quality.”
Dow Schofield Watts’ Midlands office has advised JPS Projects, a leading provider of specialist retrofit services with operations in Manchester, Chesterfield and Hemel Hempstead, on its private equity investment from Cordovan Capital Management.
