Our Business

Prefequity offers owner-managers an attractive alternative to private equity to support their strategic growth and development plans.

For a company that is capital-constrained or requires investment, often the only option is to go to private equity. However, an investment from private equity typically leads to significant dilution and loss of control for the owner-manager. 

Prefequity offers a fresh alternative. Through use of its flexibly structured capital, Prefequity is able to provide ambitious owner-managers with the required investment while allowing them to retain control and a greater share of their business. 

Flexible structuring

A Prefequity investment is tailored to suit the unique requirements of each company and its growth plans. Our preference is to invest for the long term - we generally aim to be invested in a company for at least five years. We are also happy to work alongside other providers of capital such as asset-based lenders. The key word is flexibility.

We always look to participate in the value generated by our investment, usually via a minority equity position. We feel this is important as it helps align our interests with those of the owner-manager. 

Some of the things you can do with our money:

  • Fund capex or working capital
  • Finance add-on acquisitions
  • Facilitate balance sheet refinancings
  • Re-align ownership between shareholders

What we add to your business

Aside from providing you with the patient capital you need to grow, we look to provide hands-on support (as much or as little as you need) to enable you to fulfil your potential. We take a partnership approach to the companies we invest in and always take a seat on the board.

Our minority equity interest in the company means we are incentivised to help you fulfil your potential.

Our ideal partners

We are looking for well established, profitable businesses that meet the following characteristics:

  • UK-based, privately owned

  • EBITDA of £2m - £10m

  • Sustainable business model, with substantial barriers to entry demonstrated by steady historic performance

  • High-quality management team with significant “skin in the game”

For more detail refer to our Investment Criteria