11 November 2022
We have advised Rockpool Investments and Blume on Rockpool's exit from its investment in Blume, a leading customer acquisition specialist in the legal services sector. The transaction will generate a return of 4.4x to Rockpool equity investors.
Rockpool backed Blume’s CEO & Founder, Dez Derry, in February 2022. Blume has grown substantially since the investment both organically and via the acquisition of customer acquisition specialist, Online Legal, in September 2022. Profitability has more than tripled over this time and Blume has made multiple new senior hires to continue its impressive growth trajectory.
Following Rockpool's exit, Sun Capital will take a majority stake in the company, supporting the management team to accelerate growth organically and via further strategic acquisitions.
This is Rockpool's second successful exit in recent months following the announcement to exit Boston MFO, one of the Isle of Man's highest profile trust and fiduciary services businesses, to Horizon Capital, on which we also advised.
Commenting on the deal, private equity partner Jonny Bethell said: "We are delighted to have advised on this successful exit and it was a pleasure working with Rockpool again and with Dez and Steve at Blume. We look forward to seeing the company continue to grow under Sun Capital's ownership."
Guy Ellis, partner at Rockpool Investments, said: "Blume is a fantastic example of how a business with strong leadership and advanced technology can grow exponentially, both organically and via acquisition. Jonny and the rest of the Taylor Wessing team provided us with exceptional support on this deal, as they have for a number of years, and we are grateful for their commercially focussed and pragmatic advice."
The team was led by partner Jonny Bethell with support from associates Sarah Wallace and Alex Stones in the private equity team, senior associate Kate Bowden in the finance and banking team and associate Jess Howard in the financial services regulatory team.
The transaction remains subject to regulatory approval.
by multiple authors
by multiple authors
by Jonny Bethell and Alice Picton