Bridgepoint makes BDC IV’s 15th platform investment with Kerv

Kerv Group is a cloud and digital transformation services provider.

  • LDC will roll over part of its investment alongside Bridgepoint and management
  • Bridgepoint is a listed international alternative asset manager
  • The firm is based in London

UPDATED. Bridgepoint has made a strategic investment in Kerv Group, a cloud and digital transformation services provider.

The investment was made via its Bridgepoint Development Capital IV (BDC IV) fund.

Kerv’s existing backer LDC will roll over part of its investment alongside Bridgepoint and management. LDC has reinvested £30 million to support the continued growth of the business.

Kerv was founded in 2020 when LDC backed executive chair Alastair Mills and group MD Mike Ing to acquire and merge three initial cloud firms. LDC invested £22 million in the initial transaction and provided £20 million in follow on funding to support complementary acquisitions.

The transaction, led by LDC’s Aylesh Patel and Francesca Speke, generates an IRR of 45 percent for LDC.

London-based Kerv employs around 700 people in the UK, Spain, Portugal, France, Switzerland, India, Hong Kong, Singapore and the US, serving public and private sector mid-market and enterprise customers. It has around 30 percent annual revenue growth and is reaching a revenue run rate of over £100 million ($127.2 million; €116.8 million) and an EBITDA run rate of £20 million.

“Their approach to growth, combining leading organic development via exposure to high-growth elements of the technology sector supplemented with strategic acquisitions, positions them strongly for the future,” said Robin Lawson, partner at BDC. “With the core Kerv platform now built, BDC’s support will help Kerv to expand its product sales, cross-selling opportunities and an increasing focus on industry verticals.”

Kerv is the 15th platform investment by BDC IV and its fourth in the UK.

Kerv is serving a £2.4 billion addressable UK market, which is forecast to grow at 16 percent per annum by 2030, according to a release.

The transaction was completed on 24 January.

Some of the investments via BDC IV include acquisition of majority stake in Fera Science in December 2023 and investment in SK AeroSafety in July 2023.

No financial terms of the transaction were not disclosed.

Bridgepoint is a listed international alternative asset manager focused on middle-market companies and is based in London.

LDC is the private equity arm of Lloyds Banking Group, headquartered in London.

Bridgepoint was advised by Lincoln International (financial adviser) Ropes & Gray (legal advisor), McKinsey (commercial), Deloitte (financial and tax due diligence), Analysys Mason (platform due diligence), Anthesis (ESG due diligence) and Marsh (insurance due diligence).

(Note: Bridgepoint owns PEI Group, the publisher of PE Hub Europe.)

Editor’s note: The story was updated to include LDC’s IRR and other details.