Stuart joined 3i in July 2006 from European private equity group BA Capital Partners. His remit is to invest up to €250m for minority stakes in market-leading growth businesses.
Which deals are you working on at the moment?
I can’t talk about any of the deals I am currently working on, but to give a flavour, transactions I have completed since joining 3i include a £10m investment to roll out UK restaurant chain Giraffe, becoming the first external investor in architectural firm Foster + Partners, and a €37m investment for a minority stake in Kneip Communications, a Luxembourg-based outsourced services provider to the financial services industry.
Can you describe the process you go through when identifying an investment opportunity?
It starts when we identify a market that we think is exciting. We then identify the main players and which ones will be the winners in the long term – they are the people that we want to partner with.The next phase is all about building a relationship with those companies – understanding what their strategy is and understanding how we can support them. Having established that a 3i investment would accelerate their progress we embark on due diligence. The final part is agreeing the deal.
What's the most difficult part of that process?
Finding the best deals before anyone else does. We spend a lot of time getting to know companies and business owners and forming relationships with them, often years before they are considering selling part or all of their business.
What do you need on your CV to get into private equity?
Most people will say that accounting or investment banking are preferred, with an MBA thrown in as well. But an increasing number of people are moving in from strategic consulting and industry roles. This is about investing, so a solid understanding of accounting and financial structuring is key.
Click here for an explanation of the private equity sector.
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