| “Deliverance, now with annual revenues running
at Pounds 10m a year, up 40% in the past year, is London's largest
provider of home cooked meals, a fast-growing sector. These days,
dinner-party hosts and hostesses, particularly for prestige occasions,
do not want to spend their time in the kitchen. Firms like Deliverance
fill the gap. It is one of half-a-dozen companies that Davies's own private-equity business, Active, has significant stakes in, with investments totalling Pounds 25m. With his partners Spencer Skinner and Bryan Vaniman, Active specialises in investing in small to mid-market companies. Others include Soho House, the club and hotel chain run by Nick Jones that started out from a single club in London's Soho. There are now Soho House offshoots in Chiswick and Notting Hill and there will soon be one in Shoreditch. The firm also owns Babington House, the chic Somerset country house hotel, and Cecconi's restaurant in London's Mayfair. The New York Soho House is said to be the city's trendiest club and there are plans for new openings in Miami and Los Angeles. Davies is excited by watching these firms grow, as he is by Leon, a chain of healthy fast-food restaurants co-founded by Henry Dimbleby, of the broadcasting dynasty. The aim is to have 300 Leon restaurants, spread across Britain. "I feel good that we are helping these small businesses grow into big businesses," he said.” Sunday Times, June 2007 |
| “In reality, private equity splits into three
broad categories; venture capital, mid-market and headline-grabbing
leveraged buyouts (see panel). In the first two instances, the investment
is based around growth in the business, with marketing at its core.
Active Private Equity, for example, bought Soho House and food-delivery
service Deliverance with growth in mind, as did Bain Capital when
it acquired Samsonite. This change in investment strategy has resulted in private equity firms hiring staff with different skills. 'Private-equity houses used to be home to ex-bankers and accountants whose comfort zone was financial,' says Spencer Skinner, a founding partner of Active Private Equity. 'Now strategy consultants and former managers to whom organic growth is not an alien concept are joining in their droves.' He adds that 'the companies we acquire can expect to benefit from the management expertise that many private-equity houses now have to offer'. “ Marketing, April 2007 |
Comments from Doug Richard on Leon: |
“Tucked behind the main drag of Shoreditch
in a hush-hush, discreetly marked converted teabag factory is
the new East-End outpost of members' club Soho House (there's
also a Chiswick House serving west London). It’s stylish
but comfy Tom Dixon-designed interior, complete with bowling alley,
luxuriant lounges and chi-chi rooftop pool and bar has been reeling
in members thick and fast. Now buzzing with media movers and shakers,
wealthy locals and the odd celebrity (we spotted David Schwimmer
on our visit), it will no doubt be increasing CEO Nick Jones's
fortunes; the annual turnover of Soho House alone is £36
million. |