Close Brothers Private Equity (CBPE) today announced the sale (for an undisclosed sum) of Capital Incentives to Accor, one of the world largest groups in travel, tourism and corporate services. CBPE has made a return of 2.3x its original investment and an IRR of over 40%.

Chester-based Capital Incentives, one of the UK’s leading incentive and performance motivation businesses, was the subject of a management buy-out from Bank of Scotland in October 2000. The management team was led by Graham Povey (Managing Director).

Since the original deal, the management have developed and expanded the product portfolio and further developed the market leading capital bond – an incentive voucher which is received at over a 100 high street retailers. New products include the highly innovative incentive award card, a branded debit card which is a popular third party incentive tool and can be loaded with credits for the recipient for use at any Visa outlet.

The sale provides Accor’s existing voucher business with a strong foothold in this growing segment of the market.

CBPE partner Iain Slater, who has been on the Board of Capital Incentives as Non-Executive Director, said: “This has been an excellent investment for us. The management have established a dynamic business that is a market leader in the incentive award card market, with strong organic growth since our investment.

We wish Graham and the other members of the team at Capital Incentives the best of success in the future”

Graham Povey, Managing Director of Capital Incentives & Motivation, commented:
“This is a hugely exciting opportunity for Capital Incentives & Motivation and Capital World Travel to join with Accor Services’ Relationship Marketing agency and operator Accentiv’, a worldwide leader in the field of incentives and motivation. Our business is highly complementary to that of Accor Services in the UK and will enable us to provide our clients with access to a wide range of employee benefits and work life solutions. It is highly appropriate that in our 20th anniversary year, we find ourselves entering a new era of growth and opportunity for all of our employees”.

Close Brothers Private Equity was advised by PWC.

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For more information contact:

Close Brothers Private Equity
Iain Slater
Tel: +44 (0) 20 7065 1133
Or email: iain.slater@cbpel.com

This press release has been issued by Close Brothers Private Equity.