MThree Consulting receives investment from private equity firm

03 September 2018 Authored by Consultancy.uk

ECI Partners, one of the UK’s leading mid-market private equity firms, has invested in MThree Corporate Consulting. MThree will put the investment towards its continued efforts to expand international, amid a period of 30% year-on-year growth for the firm.

Founded in 2010, MThree Consulting is a Canary-Wharf-based financial services consultancy specialised in IT and financial markets. Today the firm employs more than 500 people, with offices in six countries and across three continents.

MThree has experienced sustained demand from global investment and retail banking clients since inception, and 2017 saw its revenues rise by 31% to £32 million. On top of this, earlier in 2018, MThree was named a talent partner for a Tier 1 US investment bank, further boosting its international business. Demand for MThree’s services has been driven by a number of factors, including MThree’s client-first business model, an increasing need for tech talent, a competitive graduate marketplace, and a broad scope of regulatory and compliance obligations in financial services, among others.

MThree Consulting receives investment from private equity firm

Now, as the consulting firm bids to maintain its current momentum, and book further year-on-year growth, it has obtained investment from private equity firm ECI Partners. With offices in London and Manchester, ECI currently manages approximately £1.7 billion on behalf of its investors, backing management buyouts, buy-ins and acquisition finance deals of growth companies valued between £20 million and £150 million. It primarily focuses on technological and market disruption, among other sectors.

The investment from ECI will enable MThree to accelerate its organic growth strategy and international expansion. The deal will see the company continue to be led by MThree’s founder and CEO, Alex Headley.

Commenting on the news, Headley said, “We’re immensely proud of our track record in helping promising students begin their careers with some of the world’s most exciting companies. We also see growing demand for our services as the global war for tech talent heats up. ECI has a strong track record in helping growth companies to realise their full potential, and today’s investment will help us to meet this growing demand.”

Richard Chapman, a Partner at ECI, added, “MThree operates in a very promising market and the Company has an excellent reputation with a stellar list of quality clients. We’re delighted to be partnering with Alex and his team as they execute their ambitious strategy for MThree and embark on their next stage of growth.”

The deal sees MThree join a growing number of consulting firms that have received shots in the arm from the private equity sector. Early on in the trend, PA Consulting allowed Carlyle to take a 51% stake in the firm, since using the funds to boost its long-dormant M&A ambitions.

Similarly, AlixPartners has also used private equity to boost inorganic expansion, and Capco used it to return to independence, but this is also something which smaller firms have committed to as well. Small and mid-sized consulting firms are getting more attention from investors, as they look to tap into the disruptive force they offer amid a crowded market, according to the latest Equiteq data.

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