What we do
Our investment approach is based on a simple, repeatable value creation model with transformation at its core. We use this consistent model to successfully develop scaled technology and services businesses.
Our unparalleled expertise in buy and build coupled with our sector focus in technology and business services is what makes us unique.
Horizon Capital’s vision is to become the leading provider of equity capital to Technology and Services companies of up to £50m in value.
We make growth buyout investments, predominantly taking controlling stakes in UK headquartered companies. Horizon Capital usually provides the first institutional capital to a company. We frequently partner with company founders who, having achieved scale and profitability, want to accelerate the next stage of their growth journey.
Our value creation model is focussed on achieving accelerated organic growth and consolidating fragmented markets through intensive buy and build programmes. The businesses we build are scaled and high quality, they are also well positioned for continued growth.
We are typically invested for five years before realising our investment through a sale to a trade buyer or larger private equity investor. The quality of the businesses we build is a key enabler of the premium valuations we achieve when we realise our stake.
We only invest in four sectors, markets in which the Horizon Capital partners have deep personal expertise from over 25 platform investments. In founding Horizon Capital, we chose to focus exclusively on these sectors as they are highly fragmented and benefit from significant long term growth drivers.
Data & Analytics
Buy & Build is at the heart of every Horizon Capital investment. Before we make an investment, we comprehensively map the market in which a business operates, often over a period of several years. As a result, before we invest we have already met the owners and leaders of dozens of businesses and observed first hand the evolution of businesses in the sector. We believe that this is the best form of due diligence and it enables us to form a clear vision of the business we want to build.
Our market mapping ensures we have an active pipeline of acquisition opportunities when we make an investment. These relationships enable us to quickly complete add on acquisitions, our platforms typically complete their first add on acquisition within 6 months of our initial investment. The platforms we back go on to complete an average of 2 acquisitions a year during our investment, typically completing 8 to 10 acquisitions and more than quadrupling in size.
The success of our buy and build approach has meant that since our inception in 2018, we have already completed 60 add on acquisitions across our portfolio. Strategically selected acquisitions help expand market share, extend geographic reach, build scale and add new capabilities – creating valuable, market-leading businesses. We work with our management teams to map, originate and execute acquisition strategies providing both advice and capital along the journey.
The businesses Horizon Capital builds with its Management teams are scaled and innovative organisations which often lead their sector niche. These high quality businesses are positioned for continued successful growth and are highly sought after by both trade organisations and larger private equity buyers.
This strong interest in our businesses enables us to consistently achieve premium pricing when we exit.
Words from our Portfolio CEOs
”When selecting a partner, Horizon Capital stood out as a specialist investor who truly understood our business and the market we operate in. Their deep sector knowledge and experience has been crucial in supporting our ambition to become a true market leader.Sapphire SystemsIan Caswell - CEO
”A proven track record in backing acquisitive companies in fragmented markets made Horizon Capital an ideal partner for our business. Their impressive sector knowledge has played a vital role in helping us satisfy our long term ambitionsDMC CanotecSimon Davey - CEO
”At the start of our ambitious growth journey, Horizon Capital identified a unique opportunity to consolidate the highly fragmented UK Education Software market. Working closely with their team has enabled us to complete 6 transformative acquisitions over the past 18 monthsJuniper EducationGavin Freed - CEO
”Horizon Capital identified a fast growing market and with their support and capital Ascent is growing organically at above market rates, whilst extending our capability through selected acquisitions. This is the second time I have worked with them in the Technology sector.AscentStewart Smythe - CEO
”Horizon Capital has played a critical role in driving Sabio’s transformational business journey. Over the past three years, we have grown from a domestic to a pan-European business whilst more than tripling our EBITDA.Sabio GroupLee Shorten - Chairman
”Horizons tenacity in completing two acquisitions simultaneously has created a platfrom from which to build a unique business in the exciting and fast growing market.Strat 7Barrie Brien - CEO