Mayfair Equity Partners has made a raft of promotions in London as the mid-market private equity firm bets on the UK’s future as a hub for innovative businesses.
(Bloomberg) — Mayfair Equity Partners has made a raft of promotions in London as the mid-market private equity firm bets on the UK’s future as a hub for innovative businesses.
In the most senior appointment, Mayfair has named Paul Reading to the newly-created role of chief strategy officer, according to a statement on Thursday. He’ll work closely with founder and managing partner Daniel Sasaki on the £2 billion ($2.5 billion) investment firm’s long-term strategy.
“We think it’s a great time to invest in the UK,” Sasaki said in an interview. “Despite the gloomy commentary, the UK economy continues to perform in line with other major world economies.”
The UK’s attractiveness as a center for small and large business has been brought into question in recent weeks, most recently after the country’s antitrust watchdog vetoed Microsoft Corp.’s proposed $69 billion purchase of Activision Blizzard Inc. But Sasaki said the country offers a “stable and generally business-friendly regulatory environment.”
Mayfair invests across the technology and consumer sectors and has backed companies including cloud firm Nasstar and YO! sushi chain owner Snowfox Group. It’s in the process of seeking £850 million for its third fund and is looking for bargains in a market that has seen prices cooled by macroeconomic headwinds.
“We were in an irrational pricing environment, particularly for software businesses,” Sasaki said. “However, that has changed and the uncertainty has led to more rational valuation expectations.”
On the exit side, most of Mayfair’s portfolio companies are selling for £1 billion or less, which, according to Sasaki, was an affordable size for most trade buyers.
“Trade acquirers are usually buying businesses for strategic reasons and therefore their pricing decisions are not primarily driven by public market valuations,” he said.
In addition to Reading’s new role, Mayfair has promoted Markus Zejermann to managing director and Ihar Valodzin, Omar Kanafani and Aryo Tehranian to directors. It’s also made Alvaro Lozano an associate director and Ryan Pugh senior associate.
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