BGF exits minority stake in Benefex

BGF has exited its investment in employee benefits firm Benefex, the first company to receive BGF funding when it launched in 2011. BGF’s minority stake has been acquired by Bain Capital.

The acquisition will enable Benefex to benefit from synergies with Bain Capital’s investments in the HR technology sector as the company moves to the next stage of its growth strategy. Founder Matt Macri-Waller will continue as shareholder and CEO.

BGF has invested £5.5m into Benefex since 2011. With the investment, the company has expanded its product and service portfolio as well as operations in the USA and Asia-Pacific. In 2015, it was recognised in the London Stock Exchange’s 1000 Companies to Inspire Britain. Benefex has won over 50 awards for its services and supported over one million employees in 250 global organisations across 25 countries.

Paul Oldham, BGF said: “As our first investment, Benefex marked a seminal moment for BGF. The company has been very much part of our own journey of growth and expansion and will now be a valued member of our alumni. We wish Matt and the team all the best as they embark on the next stage of their growth with Bain Capital.”

Matt Macri-Waller said: “We are proud to have been BGF’s first ever investment back in 2011. During their tenure as our investors, we have continued to drive innovation, build out OneHub and have introduced a number of BGF-backed businesses as customers. We are now excited to be partnering with Bain as we look to add further scale to the business and move to the next stage of growth.”

The transaction, led by BGF’s Paul Oldham, Fiona Gibson and Sarah Ledwidge, represents BGF’s eighth full exit this year.  The shareholders were supported on the sale by Chairman Tim Bittleston and BCMS in Reading (Duncan Wade).

More than 50 businesses have received new investment from BGF in 2018, either through initial or follow-on funding.