Five years after being bought out of a pre-pack administration by turnaround specialist RCapital, Cluttons has brought in a new investor and completed a management buyout.
The 258-year-old LLP has been bought by its management with external funding from Treun Capital. The management declined to comment on the capital invested, but Treun’s website says it invests “up to £10m of private equity to back entrepreneurial teams”.
Under the new structure James Gray will continue as chief executive, with Nicholas Potter continuing as chief financial officer. Partner John Gravett is being promoted to the new role of managing director, while two non-executive directors are also joining the business. Alan Froggatt, former chief executive for Europe at CBRE, will become non-executive chairman, while former Bidwells managing director Catherine Spitzer will become a non-executive.
Five years after being bought out of a pre-pack administration by turnaround specialist RCapital, Cluttons has brought in a new investor and completed a management buyout.
The 258-year-old LLP has been bought by its management with external funding from Treun Capital. The management declined to comment on the capital invested, but Treun’s website says it invests “up to £10m of private equity to back entrepreneurial teams”.
Under the new structure James Gray will continue as chief executive, with Nicholas Potter continuing as chief financial officer. Partner John Gravett is being promoted to the new role of managing director, while two non-executive directors are also joining the business. Alan Froggatt, former chief executive for Europe at CBRE, will become non-executive chairman, while former Bidwells managing director Catherine Spitzer will become a non-executive.
Cluttons said the new structure would enable it to “maximise the potential of its residential, connectivity, workplace and sustainability expertise”.
“The last few years have been pivotal for Cluttons in building a leadership position in the management, sustainability and connectivity-driven activities of professionally managed estates, particularly within the dynamic and ever-growing national energy and digital infrastructure sectors,” said Gray.
He added: “The unique combination of digital connectivity and sustainability advice we provide is critical to the delivery of both government and client net zero ambitions. Alongside our residential, infrastructure and workplace strategy expertise, these strengths enable us to create value for our clients at every stage of the property lifecycle and we will continue to leverage them as a key part of our growth ambitions.”
Newly appointed managing director Gravett said: “We have set our ambitions high but, with the backing of Treun Capital, they are also realistic. We will continue to make key hires and our focused expertise and diverse client list continue to attract entrepreneurial leaders and ambitious professionals from competitors.
“Many talented people, teams and smaller businesses are seeking opportunities to be part of a modern full-service business that brings them closer to the big names in property and the issues that matter most to them. Cluttons is a refreshing alternative because we have size and depth, but we are also nimble and agile, allowing our people to grow and be part of one joined-up, dynamic business.”
Cluttons’ most recently filed accounts show a turnover of £24.8m for the year ended 31 March 2022, up by 17% on the previous year. The firm has also been investing in geographical expansion and modernisation, and recently took a lease at a new sustainable City office building at Yarnwicke on Cannon Street, EC4.
In 2021, Cluttons launched a Northern hub in Manchester and has now signed a 10-year lease at 26 Cross Street, part of the St Ann’s Square conservation area in Manchester, as well as extending key hires into Newcastle, an area the business is also growing.
Gray said Cluttons hoped to expand its regional offering, taking it from around 10% to 20-25% of the business and could reasonably grow its turnover from around £25m to £40m within the next three years.
“I could quote numbers, but we’re not chasing turnover,” said Gray. “We could be a £40m business in three years’ time, which would give you an idea of the gradient that we’re looking at. But frankly, £40m is a meaningless number. We want to do it profitably and we want to do it sustainably. We want to ensure that we are constantly supporting the business through that growth phase.”
Pinsent Masons, Ulmus Advisory and RJP advised Cluttons on the MBO; Treun Capital was advised by Shoosmiths and HMT.
Make sure to pick up your EG Magazine this week for an in-depth interview with Gray and Gravett.
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Image from Cluttons
