Houlihan Lokey Advises Kerv Group

Houlihan Lokey is pleased to announce that Kerv Group (Kerv), a portfolio company of LDC, has been acquired by Bridgepoint.

Kerv, which is headquartered in the United Kingdom, is a provider of next-generation cloud and digital services to a number of industry verticals, including financials services, public sector, retail, and the not-for-profit sector.

It was founded in 2020 when LDC backed Executive Chair Alastair Mills and Group Managing Director Mike Ing to acquire and merge three initial cloud firms with the intent to prioritise organic growth, underpinned by a clear focus on employee engagement and customer experience. Today, Kerv employs approximately 700 people in the United Kingdom, Spain, Portugal, France, Switzerland, India, Hong Kong, Singapore, and the United States.

Under the three-year partnership with LDC, the private equity investor arm of which is part of Lloyds Banking Group, Kerv underwent a transformational growth journey. It has sector-leading annual organic revenue growth of c. 30%, revenue run rate of more than £100 million, and EBITDA run rate of c. £20 million. The transaction generates an IRR of 45% for LDC. As part of the transaction, LDC will reinvest £30 million alongside Bridgepoint.

Bridgepoint is one of the world’s leading quoted private asset growth investors. It has more than €39.5 billion of assets under management. The investment in Kerv is being made by Bridgepoint Development Capital, which is focused on middle-market growth businesses.

Alastair Mills, Group Executive Chairman of Kerv, said, “The investment from BDC represents a significant milestone in our short history. Kerv has quickly established itself as a significant player in the UK digital services market with our sector-leading organic growth. This success is underpinned by our relentless focus on employee engagement and customer experience. In BDC, we have found the best possible partner to help write the next chapter for Kerv in terms of shared values, sector experience, and a scale that matches our ambition.”

Houlihan Lokey served as the exclusive financial advisor to Kerv and LDC, supporting all relevant aspects of the transaction, including marketing, structuring a competitive process, coordinating due diligence, and negotiating key deal terms.