Aquiline takes majority stake in Isio
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Private equity firm Aquiline Capital Partners has agreed to take a majority holding in Isio Group, subject to regulatory approval. The pensions consultancy spun out of KPMG UK four years ago with backing from another private equity house.
The private equity investment will “support Isio’s growth strategy of innovation by expanding its core services and growing adjacent practices, including rewards & benefits, investment advice and private capital”, Aquiline said, through “a combination of targeted M&A to build additional service lines and advisory capabilities, and by attracting new talent to the business”.
The pensions consultancy was bought out by about 20 partners backed by Exponent Private Equity in March 2020, but rumours that Exponent was looking for a buyer started to swirl earlier this year. Aquiline is now buying Exponent’s share, saying Isio’s management team will continue to retain a significant minority investment.
Isio chief executive Andrew Coles said the new investment from Aquiline will enable high quality service and better outcomes for clients.
“Key to this is having a culture that appeals to the best talent in the sector with long-term, high quality career opportunities. I am personally excited about the future and look forward to continuing to lead Isio in its next phase of evolution and growth,” Coles said.
Igno van Waesberghe, managing partner at Aquiline, noted that his firm has experience and “deep networks” in the sectors Isio operates in.
“Isio is a business we have admired and got to know well, not simply as an investment, but first as our adviser and then our partner,” van Waesberghe said.
“It has delivered impressive organic growth and successful expansion through strategic M&A. We look forward to working with Isio’s management team to continue to develop their offering, diversify the business, and support them in further accelerating growth,” he added.
Isio had four successive years of double-digit growth and bought Premier Pensions Management in 2022 and Deloitte Total Reward in 2023. It now has 1,200 employees and 10 offices in the UK. For the year to 30 September 2023, the consultancy reported revenue of £135.3m, up about 33% on 2022, and EBITDA of £34.4m, up 27%.
Aquiline’s other UK investments include fintech and master trust provider Smart Pension, Wealth at Work, a provider of workplace financial education, guidance and advice, and Landytech, a private markets investment management technology provider.
The private equity house was advised by RBC Capital Markets and law firm Herbert Smith Freehills. Exponent and Isio took financial advice from Evercore and legal advice from Macfarlanes, while Isio’s management team was also advised by Liberty Corporate Finance and Proskauer.
Private equity firms are increasingly targeting the UK pensions sector. LDC is the private equity partner of trustee firm Independent Governance Group, while Corsair Capital invested in Zedra in 2019. Conduent sold its HR and pensions consulting arm to private equity firm HIG Capital in 2018, until it was bought by insurance brokerage and consulting firm Arthur J. Gallagher & Co last year.
The private equity investment will “support Isio’s growth strategy of innovation by expanding its core services and growing adjacent practices, including rewards & benefits, investment advice and private capital”, Aquiline said, through “a combination of targeted M&A to build additional service lines and advisory capabilities, and by attracting new talent to the business”.
The pensions consultancy was bought out by about 20 partners backed by Exponent Private Equity in March 2020, but rumours that Exponent was looking for a buyer started to swirl earlier this year. Aquiline is now buying Exponent’s share, saying Isio’s management team will continue to retain a significant minority investment.
Isio chief executive Andrew Coles said the new investment from Aquiline will enable high quality service and better outcomes for clients.
“Key to this is having a culture that appeals to the best talent in the sector with long-term, high quality career opportunities. I am personally excited about the future and look forward to continuing to lead Isio in its next phase of evolution and growth,” Coles said.
Igno van Waesberghe, managing partner at Aquiline, noted that his firm has experience and “deep networks” in the sectors Isio operates in.
“Isio is a business we have admired and got to know well, not simply as an investment, but first as our adviser and then our partner,” van Waesberghe said.
“It has delivered impressive organic growth and successful expansion through strategic M&A. We look forward to working with Isio’s management team to continue to develop their offering, diversify the business, and support them in further accelerating growth,” he added.
Isio had four successive years of double-digit growth and bought Premier Pensions Management in 2022 and Deloitte Total Reward in 2023. It now has 1,200 employees and 10 offices in the UK. For the year to 30 September 2023, the consultancy reported revenue of £135.3m, up about 33% on 2022, and EBITDA of £34.4m, up 27%.
Aquiline’s other UK investments include fintech and master trust provider Smart Pension, Wealth at Work, a provider of workplace financial education, guidance and advice, and Landytech, a private markets investment management technology provider.
The private equity house was advised by RBC Capital Markets and law firm Herbert Smith Freehills. Exponent and Isio took financial advice from Evercore and legal advice from Macfarlanes, while Isio’s management team was also advised by Liberty Corporate Finance and Proskauer.
Private equity firms are increasingly targeting the UK pensions sector. LDC is the private equity partner of trustee firm Independent Governance Group, while Corsair Capital invested in Zedra in 2019. Conduent sold its HR and pensions consulting arm to private equity firm HIG Capital in 2018, until it was bought by insurance brokerage and consulting firm Arthur J. Gallagher & Co last year.
What does the growing role of private equity backing in pensions companies mean for the sector?
