UK-based nursery operator N Family Club has sold a minority stake of around 25-30% to alternative asset manager Gresham House, EducationInvestor Global can reveal.

This publication has learnt that the company raised £42.5 million as a combination of the minority investment from Gresham and a follow-on investment from minority shareholder the Steyn family.

The management team, led by founder Phillip Sunderland, will remain as significant shareholders and continue to lead the business. The investment will enable the group to add 5,000 spaces across the UK, according to the company.

Gresham invested in the business via its British Sustainable Infrastructure Fund II. Following the deal, Peter Bachmann, a managing director at Gresham and fund manager of its sustainable infrastructure strategy, will join the board of N Family Club.

The sale process, which has been run by DC Advisory, was launched in November 2021, as revealed by this publication at the time.

N Family Club operates 20 nurseries in London, Kent, Surrey and the West Midlands. The company generated turnover north of £10 million in 2021 and expects to reach turnover north of £30 million in 2022, a source close to the business told this publication. This is a significant increase from £3.8 million generated in the year ended 31 December 2020.

Founded in 2017 by former investment banker Phillip Sunderland, N Family Club received funding from angel investors and £15 million of debt provided by Gravis in the summer of 2019.

Date Published: 16 May 2022

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