Synova Capital LLP (“Synova”), an award winning investor in UK growth companies, has supported the management buy-out of leading financial information business, Defaqto Group Limited (“Defaqto”, the “Company” or the “Business”). Synova has invested alongside the existing management team, acquiring a majority shareholding in the Business.
Defaqto is an independent provider of information on financial services products, focused on providing intelligence to support better financial decision-making. At its heart is the UK’s largest retail financial product and fund database – which it maintains by collecting data from across the whole market, and using its expertise and insight to analyse this data, making it comparable. From this, Defaqto creates a range of products and services – ratings, software solutions, data services, and publications and events – to deliver this information in a meaningful way. Defaqto’s intelligence facilitates enhanced financial decisions and greater effectiveness in the creation, management and distribution of financial products.
Synova’s investment will support the management team to grow the Company primarily through its organic activities with a strategy to double the size of the Business over the next few years.
Commenting on the transaction, Zahid Bilgrami, Defaqto’s Chief Executive, said: “We are delighted to be supported in this next phase of growth by Synova. We believe there are a number of exciting opportunities ahead of us, including the expansion of the products and services that we offer to our customers on top of our unique product intelligence.”
Commenting on the transaction, Philip Shapiro, a Managing Partner at Synova and Non-Executive Director of Defaqto, said: “We are delighted to be partnering with Defaqto’s impressive management team who have delivered exceptional growth in recent years. We believe that Defaqto will continue to grow strongly as it provides greater transparency to the highly complex and heavily regulated retail financial services market.”
Llewellyn John, who represented FF&P Private Equity on the board of Defaqto until completion, said: “Zahid and his team have done a great job of creating value in Defaqto through a strong commitment to the business and belief in the value of independent data driving improved financial decisions. We think that the business will continue to thrive and grow and we wish them every success in the future.”
Russell Healey, Foresight Partner and Director of Defaqto until completion commented: “We are delighted to have supported Defaqto and its management team. The team has delivered a market leading product range and strong growth in profits over the last few years. We are confident that Defaqto is well-positioned to flourish in the next phase of its development.”
