Another successful exit for Prefequity

Lancashire-based CaviTech Solutions designs and manufactures complex high-precision injection moulds for the personal-care and medical sectors.    

Formed in 1955, the company has continually invested in the latest technology and processes to build a strong market position in its chosen sectors. CaviTech’s highly automated manufacturing capability enables it to build repeat series of interchangeable moulds that are delivered to blue-chip customers around the world.

In 2017 Prefequity provided a long-term investment to CaviTech to refinance its existing bank debt and to buy out minority shareholders. Over the six years of Prefequity’s involvement, the company’s EBITDA has more than doubled as management has exceeded its original growth plan. The exit was achieved via a bank refinancing.

Theo Dickens, Managing Partner at Prefequity and a board member of CaviTech, commented: “We are delighted with the performance of our investment in CaviTech. It’s further evidence of our ability to deliver high double-digit returns to investors with strong downside protection by identifying and backing first-class businesses”. 

Prefequity is an independent firm that invests in lower middle-market firms across the UK by providing capital solutions to support their growth plans and strategic transactions. In particular it offers ambitious owner-managers a non-controlling and less dilutive alternative to private equity