News and Insights

2024 has seen ECI complete five platform investments, but in an environment of quieter dealflow for the private equity market at large. With over 60 countries having gone to the polls in the last 12 months, what does the global outlook look like now for CEOs, and what is front of mind for LPs, PE Funds and the ECI team?

Tom Wrenn on the 2025 deal market:

“There is an excellent backdrop for increased deal volume across our market in 2025. Currently the UK has a more stable environment compared to the rest of the world, or even to last year. The after effect of a definitive general election win by the incoming government is good for general investment macro stability. The government is cracking through its agenda, which regardless of whether you agree with it or not, is enabling the PE industry to plan ahead. Interest rates are starting to come down, albeit slowly, and this has been calming for businesses in terms of debt cost and leveraged buyouts. CGT changes increasing at a sensible rate demonstrates the government is consulting with business and industry to get it right, and thankfully hasn’t led to business owners halting sales.

We anticipate a continuing uptick in deal flow in 2025 as investors continue to call for more liquidity, but there may be a greater range of quality leading to more failed processes. Higher deal volume in 2025 will be very welcome for the PE market, but it’s important not to ignore the movement of global tectonic plates such as the war in Ukraine, the Middle East and the uncertainty around Trump’s agenda when he’s in power.”

What are you personally most excited about in 2025? Finally being through the horrors of UK 11+ exam process as my final child emerges from them!

Jeremy Lytle on the fundraising market:

“It’s been a challenging few years for fundraising as the same amount of capital being raised is concentrated in far fewer funds. One in three funds are now closing below target and the average time spent fundraising is double what it was in 2019. Behind all these challenges is a lack of exits – realisations have been muted since 2022 when interest rate hikes started, so LPs’ budgets haven’t been replenished with fresh capital for new funds. 

Desire to deliver DPI therefore continues to be the primary objective for LPs, but they will also be looking for mature fund management and smart exits - GPs making sure they are not hanging on to average performing investments for too long, or selling their stars too early, and focusing on the deals that really have potential to drive the overall fund return. These factors, alongside a desire for more co-investment, will likely be three key decision makers for LPs looking to deploy capital in 2025.”  

What are you personally most excited about in 2025? Liverpool doing the double of PL and Champions League by the end of May!

Rory Nath on the North West investment market:

“The wider background of UK stability provides a solid foundation for North West businesses and dealmakers to have a busy 2025. There continues to be challenges around operating in a lower growth environment, but we see North West businesses bucking the trend, delivering some of the best of UK tech in particular. A great example of this is CMap, a Manchester-headquartered market-leading provider of professional services automation (PSA) software, which ECI backed in October 2024. What we’re seeing from the North West headquartered businesses in our portfolio is that, while they benefit from the fantastic local business community, their ambitions are global and we’re seeing great international growth both organically and through acquisitions.

We continue to look for greater infrastructure investment across the region, and government announcements around intra-city transport links are welcomed, although we’ve been here before so I won’t buy a train ticket just yet!”

What are you personally most excited about in 2025? my 10 year anniversary at ECI, and my wife and I welcoming our second child!

Skyler Ver Bruggen on the acquisition market:

“We saw an uptick in M&A activity this year as founders looked to exit ahead of the first Labour budget at the end of October 2024. Advisors are still reporting a high number of sales mandates, although with some slow down in workforce heavy sectors that have been impacted by NI increases. Despite the promise of no more tax increases for businesses there is still uncertainty about how that might change in the future and that will accelerate some sales processes, alongside the usual drivers of enabling succession and retirement.

With a background of lower economic growth, companies and investors will look to acquisitions to drive value. Acquisitions which offer the opportunity for the buyer to extend capability, expand into new geographies and ultimately drive cross sell and up sell will continue to see lots of interest.”

What are you personally most excited about in 2025? Hopefully moving house and getting a bit more space!

Lewis Bantin on portfolio growth opportunities:

“I think 2025 will see more investment in the commercial ‘engines’ of companies, looking at how to marry strong outbound business development, rather than reliance on Google search. While PPC and SEO are great, you are increasingly reliant on a smaller and smaller piece of SEO real estate on a search page, and a hugely contested PPC landscape. Companies are going to become much more focussed on their ideal customer profile and we’ll be looking to support our portfolio in a targeted approach to activating those customers. If you get this right, you should benefit from an increase in customer lifetime value and long-term growth!”

What are you personally most excited about in 2025? I’m looking forward to seeing Captain Caelan leading the Lions down under and hopefully joining him down there!

Tsvetelina Delcheva on the European market:

“Looking at the European deal market, I expect to see more activity in 2025 as investors’ demand for liquidity remains strong. The drivers here are much the same as in the UK – strong dry powder reserves, combined with longer hold periods and ageing portfolios.

Demand for tech businesses will remain strong, which will mean we will likely see more deals in the likes of the Benelux and the Nordics where the tech sector is a cornerstone of the economy. Companies here are doubling down on AI adoption, and leading the way in sectors that enable automation, data analytics, and cybersecurity. Many of the resilient tech businesses across the Benelux and the Nordics are globally-minded, and for that reason we are increasingly seeing international investors being active in those regions, with subsector experience rather than geographical proximity being one of the most important factors for management teams when selecting an investment partner.”

What are you personally most excited about in 2025? Having recently moved closer to Wimbledon, I’m looking forward to experiencing the atmosphere of The Wimbledon Championship from a close distance for the first time.

Ash Patel on the cyber outlook:

“As AI tools grow more sophisticated, phishing attacks are expected to become more targeted and harder to detect. Deepfakes are increasing and improving in quality, with more companies being attacked, which will emphasise the need for robust detection, tools and policies. There will be a push for blockchain and watermarking as technology tries to keep up with attackers.

While AI will benefit bad actors, it will also hinder them. AI-driven cybersecurity systems will improve how organisations can detect and respond to threats. As the machine learning model improves, the speed and accuracy of detection will go up and fewer attacks will make it through. It also enables companies to spot unusual user or device behaviour that might indicate insider threats or compromised accounts.”

What are you personally most excited about in 2025? Celebrating 25 years of marriage and 25 years at ECI!

In our latest Quick Fire, we chat with Investor Relations Director, Chris Mockford, about why he joined ECI, what’s front of mind for LPs in the current market, his preferred outlet for his competitiveness and his love of the Boss.

Q: Have your first three months at ECI been as you expected?

Happily, yes! Exactly as I expected. We’ve closed four new investments in the time I’ve been here, which has meant seeing the ECI investment machine in action. We’re also partnering with LP co-investors on two of these transactions, continuing ECI’s track record of offering substantial co-invest to its fund investors, which has become so important these days.

We also had our LPAC meeting shortly after I joined and we have the AGM coming up in Q1 next year. So, there’s been plenty to get stuck into right from the get-go.

In terms of ECI as a business, I had high expectations coming in. Not only from my interactions with team members during the hiring process and ECI’s overall reputation, but also as I knew my predecessor before joining, so got some appropriate DD in nice and early... Now that I’ve landed, everything’s been exactly in line with what I had expected. There are unique approaches to firm and fund management here, which I think are part of the reason ECI’s been around for nigh-on 50 years and are one of the main reasons I was so excited to join.

Q: What made you want to join ECI?

I knew quite a bit about ECI and the role specifically, before joining. I’d previously been on the placement agent side, first at US investment bank Evercore and then co-founding a boutique placement agent with two other partners, before making the move in-house with a pan-European special situations fund. I knew I wanted to stay in-house and was looking for a firm with a great reputation and a clear understanding that private equity is a long-term game – somewhere I could join and, all being well, stay for the rest of my career. ECI was in that sweet spot, having a fantastic long-term track record, and an approach to firm management that can last another 50+ years, but also great people that work in the same way I do.

Q: How did you get started in the world of placement?

I originally planned to go into equity research but left university in 2011 with the Eurozone crisis in full swing, so those dreams went rapidly south. I decided to focus on smaller companies instead, looking for a role where I could work directly with senior people and hopefully learn a lot. In the end, I took a job with a start-up mining company after sending a letter to their recently-hired CFO, asking if he needed some help... A complete shot-to-nothing but I was hired and did indeed learn a huge amount.

Unfortunately, one of the things I learned is that it’s really hard to build a mine. So before long I left to join Evercore, a much more established firm and in the world of finance, where I knew I wanted to be. I loved the people and it was great working with driven, excited individuals who were passionate about what they were doing. It offered what I’d wanted from equity research in the first place – a mix of qualitative and quantitative work, with a sales angle – just in a format I hadn’t expected.

Q: What traits do you think you need to succeed in IR?

At its heart, the IR role is about outlining how we make investment decisions, making it clear what’s different about our approach compared to our peers, evidencing how it works with facts and figures and then going out and building relationships with investors who find that story compelling.

It’s so easy to get used to your own way of doing things and forget how it’s different or what makes it special. I love thinking about that and trying to find a clear, concise and engaging way of expressing it – a message that cuts through the noise and hopefully resonates with investors.

Being able to then convey that message when you’re sitting across the table is a very different skill but both are a huge amount of fun, as is the process of fundraising itself, which can be intense and is something I inherently enjoy.

The last thing I’d say is you also have to have patience and an appreciation for building a relationship even if it ultimately doesn’t result in an investment. These things take time. Fundraising is much less transactional than other roles in finance – a conversation towards your next fundraise will likely be measured in years not weeks. And while it’s a fantastic feeling when you do ultimately secure an investment, it also helps to have a good dose of resilience and a positive outlook even if you don’t get the result you were hoping for – after all, a “no” today could be a “yes” in years to come.

Q: What is front of mind for LPs in the current market?

DPI has been a huge focus for LPs over the last couple of years as there’s been so little of it! A lot of GPs raised and deployed very large funds back in 2021/22 but distributions have been scarce. It’s another reason I was excited to join ECI – fund size increases have always been quite disciplined here and the team chose to exit into the buoyant markets of 2021/22, rather than doubling down.

There’s also a growing focus on fund management – GPs that can uncover and invest in great businesses, but then also do the next part, which is properly managing the fund’s risk and choosing how to deploy follow on capital, how to support businesses that face challenges during the investment period, and when to exit. Having clear, established processes and a culture that prioritises the overall performance of the fund, not just each deal, will be increasingly important.

Beyond that, co-invest continues to be key and we’re hearing a lot more LPs say they now look at their GPs’ performance in the round, i.e. a single line item showing the overall net return of that relationship, across fund commitments and any co-invest. We’re also hearing more and more from LPs about team stability and a preference for GPs that recognise private equity is a long term game. So – how do GPs make sure they have the strong cohesion and culture they need, to keep that team in place for years to come.

In that sense ECI have made my job slightly easier, in that they established clear practices around people management and succession many years ago. That means there’s a clear path for promotion available to Investment Managers joining ECI today to ultimately leading firm down the line. That makes it much more attractive to bright, ambitious people who might otherwise leave or spin out if they can’t see that path to senior roles within the firm.

Quick Fire with Chris: 

What are you most looking forward to in 2025?

I’ve just bought a road bike so I’m looking forward to getting out for some rides in and around London.

Describe your perfect Sunday

Walk in the countryside, home for a late lunch and an afternoon of board games with my partner. Not a joke… I’m insufferably competitive and get a fix from board games I haven’t found anywhere else.

Who is headlining your dream festival?

Bruce.

Have you ever had 15 minutes of fame?

When I was a kid we were in Rome when the pope died, so we queued for 14 hours to see him lying in state and were interviewed by CNN. A niche claim to fame but there it is…  

What film have you watched the most times?

Shawshank Redemption… although Gladiator is a very close second. There’s a group of extras in the first battle scene who are meant to be in a brutal fight for survival but are just chatting and joking with each other. I only saw that on the most recent watch – the film just keeps on giving.

What superpower would you most like to have?

Telekinesis. I would move my partner’s keys into her pocket before she leaves in the morning.

ECI-backed Ciphr has moved into the employee benefits business, with the acquisition of Avantus.

Avantus, founded in 2005, serves over 400 businesses globally through its intuitive, and fully customisable, employee benefits and rewards platform, FlexGenius, and its popular, white-labelled solution MyWorkPal.

This is the third acquisition since ECI's investment for Ciphr, having bought Marshalls (now Ciphr eLearning) in April 2023 and Shape Payroll in June this year, and builds on Ciphr’s strategy to acquire UK businesses that complement its core HCM offering. It’s also its largest acquisition to date – significantly expanding Ciphr’s customer proposition to include employee benefits and wellbeing for the first time.

Avantus’ robust platform enables employers to deliver unlimited, personalised benefits choices to multi-generational workforces with diverse needs and differing expectations and priorities. It can help strengthen organisations’ Employee Value Proposition, support their talent retention, recruitment and recognition strategies, and streamline the admin process for HR. And it empowers employees to manage and see the value of their eligible core and voluntary benefits, such as salary sacrifice, medical and dental cover, retail discounts, pensions, and financial protection, in one central, easy-to-use, portal.

Philip Curtis, Avantus’ co-founder and CEO, and his 30-strong team will also join Ciphr Group from today.

The comparison is often made between business leaders and orchestra conductors - not playing a specific instrument, but rather bringing an ensemble together to create something exceptional.

In reality, a conductor's role extends way beyond waving a baton and is a great example of leadership. They require a crystal-clear vision, exceptional communication skills and have to adapt quickly and manage multiple stakeholders. To bring the comparison to life, we spoke to the acclaimed and multi-award-winning saxophonist, conductor and arranger Phil Meadows about what makes a great leader.

Phil is recognised as one of Europe’s most talented and creative musicians, celebrated for his innovative approach to music. He’s a double Parliamentary Jazz Award, London Music Award and Peter Whittingham Jazz Award winner, and has collaborated with renowned ensembles including the BBC Concert Orchestra, Metropole Orkest, Royal Northern Sinfonia and Scottish pop icons, Texas.

Holding a long-standing residency at Ronnie Scott’s Jazz Club, and often managing ensembles of up to 100 people from diverse backgrounds, Phil has developed an exceptional leadership style.

Here are his top five insights for achieving this:

1. Foster an environment that caters for mistakes.

In music, as in business, true innovation comes from embracing risk. For me, the most exciting music stems from creative freedom and having the ability to freely explore thoughts and ideas without judgement.

When working with virtuoso musicians (or highly skilled teams), risk is accompanied by vulnerability. People open themselves up to criticism, putting their insecurities on display to develop their skill sets or contribute something new. When exploring new ideas, it’s crucial to foster an environment where mutual encouragement, shared learning and calculated risk-taking are valued and supported.

People who feel secure in their risk-taking, are more likely to contribute groundbreaking ideas.

2. Clarity of vision to inspire

When conducting orchestras, having a clear artistic vision is essential. I start all projects with in-depth research, exploring the music’s heritage and societal role. I aim to develop a programme, or performance approach that resonates with musicians, audiences and listeners alike and effective communication is key to achieving this.

Orchestral music is a team effort and to harness their skills, I need to clearly communicate my vision from the outset. I start before a note is even played by sharing playlists in advance and using the start of the first rehearsal both to provide cultural context and to outline the key goals for the project.

As rehearsals progress, I remain flexible and open to the musicians’ creative input and review my plan at the end of every session. Everyone brings unique strengths, and by listening and adapting the final performance benefits.

3. Diversity breeds creativity

I’ve always been passionate about bringing together different cultures and musical genres, and I’ve been fortunate to work on projects spanning Classical, Jazz, Nigerian Folk, Afrobeat, Hip-Hop, Grime, Dance, Electronic, Contemporary Classical and Commercial Pop.

Many of the orchestral collaborations I work on bring together multiple genres, meaning each project has a unique set of influences and often demand skill sets that go beyond traditional orchestral norms. To achieve this, I assemble diverse teams of specialists from the genres involved, where possible integrating the non-classical musicians into the heart of the orchestral line-up.

This approach allows musicians to play to their strengths, share knowledge, and learn from one another. By fostering a melting pot of creativity, we’re then able to honour the roots and traditions of the music whilst creating a new space for collaboration to flourish.

My work with the Metropole Orkest and 101 Barz (Orchestra and Hip-Hop), Engines Orchestra x Femi Temowo (Orchestra with Nigerian Folk and Afrobeat) and the BBC Concert Orchestra and Texas (Orchestra and Commercial Pop) are great examples of fusing different musical communities and cultures.

4. Make listening to others a main focus

Every ensemble I work with is filled with incredible talent and expertise. Each musician brings a unique story, skillset and perspective that can add value to any project. I may craft the overarching vision and guide the orchestra, but the players know a lot more about their instruments than I do. They’ve dedicated decades to mastering their individual craft, so it’s important I listen and make space for their input.

The success of my projects relies on facilitating an environment where everyone feels confident to ask questions and comfortable offering suggestions, even within the traditional hierarchies and structures of an orchestra. Although the vision I develop provides direction, I always incorporate space for flexibility into the plan, recognising that the musicians’ insights are crucial to producing the best possible music together.

5. Build on people’s weaknesses through their strengths

My approach to skill development uses existing strengths to develop areas of weakness and was key in my work with the National Youth Jazz Orchestra’s under-18 programme, where I spent a decade nurturing young talent. It continues to guide my methodology for world’s top professional orchestras and forms a core part of my PhD research.

The approach is grounded in the science of learning, with a focus on the retention of new information. Essentially, it’s about linking new skills to what we already know and ensuring we don’t overwhelm ourselves by trying to learn too much at once.

The science behind this is detailed and my approach combines two theories, but its practical applications are reasonably straightforward. Pressing (1984) determined that we can most effectively learn one new skill at a time, whilst using two sets of established knowledge clusters to support the process. Wolfe (2010) developed the ‘working memory’ concept which combines the need for multi-sensory instruction (learning through a variety of methods that support each other to aid long-term retention) and the reinforcement of new information repetition.

Essentially the approach strengthens our neural pathways, making it easier to recall and apply what we’ve learnt. But put simply, it’s about linking new skills to what we already know and ensuring we don’t overwhelm ourselves by trying to learn too much at once.

You can see Phil perform live throughout the year. His dates can be found here.