Jeffreys Henry bolsters growth plans with private equity funding

Accountancy firm Jeffreys Henry has secured private equity funding to expand the business, but has not disclosed the level of investment

Alantra, the global mid-market investment banking firm has advised private equity firm Tenzing, on its investment in Jeffreys Henry, which focuses on accountancy services for UK SMEs.

London-based Jeffreys Henry provides essential services including audit, tax and advisory services to over 2,000 fast-growth businesses, international companies and high net worth individuals.

As the regulatory and compliance environment becomes more and more complex, Jeffreys Henry’s core market has grown by over 5% per annum. The firm offers a ‘one-stop-shop', full-service solution to support finance and back-office capabilities.

Over the past 15 years, Jeffreys Henry has increasingly differentiated itself from traditional providers through its early adoption of technology to improve its service proposition, including the use of workflow management and client interaction software. This is combined with the use of a flexible resourcing model to provide a more efficient and flexible service.

The business has delivered double-digit growth throughout the Covid-19 pandemic, underpinned by its innovative use of digital lead generation and referrals.

Justin Randall, managing partner and group CEO of Jeffreys Henry, said: ‘Tenzing’s investment allows us to draw on their expertise and proven ability to invest in successful growth businesses, and further develop our digitally enhanced service, attract and retain top talent, create an amazing working environment, and expand by acquisition whilst retaining our strong brand name and independence.

‘With their help, we hope to achieve our goal to become the UK’s leading tech-enabled provider of advisory, compliance, assurance and other essential business services to entrepreneurs and high growth SMEs.’

Following the investment, Randall will take on the additional role of Group CEO, sitting on the new holding company board of Jeffreys Henry along with Jon Isaacs, and two Tenzing non-executive directors Mike Reynolds and Christian Hamilton.

David Silver will also be joining the board as part-time chairman. Until recently he was head of European investment banking for Robert W Baird. He has completed around 100 M&A transactions, working principally with services and tech-enabled services companies, owned by entrepreneurs and private equity firms, including Tenzing.

The Alantra team comprised Richard Holden, Josh Jones, Harry Sparks and Sophie Glanfield.

Richard Holden, partner and uk head of business services at Alantra, said: ‘We’re pleased to have supported the Tenzing team on this investment in Jeffreys Henry; the first step in building a scaled professional services platform providing mission critical services to entrepreneurial businesses in focused end verticals. Jeffreys Henry has demonstrated its ability to scale faster than the market through leveraging technology and its position as a trusted business adviser.

'Tenzing and the management’s combined vision should lead to the development of a more industrialised and innovative business model that meets the SME market’s needs.’

Mike Reynolds, investment director at Tenzing, said: ‘Alantra's experience in the professional services space was invaluable throughout this transaction. It was great working with the team who supported us with trusted advice as well as keeping things fun in the challenging conditions of lockdown. Richard and his team have similar core values to Tenzing - ambition, integrity and openness and this enabled them to build a strong relationship with the key stakeholders on both sides whilst delivering the deal.’

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