3i exits RK Group

3i has realised its minority stake in recruitment consultancy RK Group Limited as part of the sale of RK Group Limited to Quantica plc, the FTSE listed recruitment and training group, in a £13m deal. 3i will receive proceeds of £3.6m, which represents a money multiple of 13.5x and an IRR of 30%.

RK Group was founded in 1993 by ex Michael Page board director Richard Robinson. The company consists of six specialist consultancies focused on executive search and selection and the placement of permanent and temporary staff in the finance, logistics, outsourcing and managed services sectors. The company employs over 100 staff across 10 offices in the north west, Midlands and south east of England.

3i originally backed the start-up of RK Group in 1993 and invested again in 1998. 3i also introduced John Watkins as non-executive director. Since 3i’s investment, the business has performed strongly. It has grown its network of branches specialising in the recruitment and career management of qualified and part qualified accountancy staff and more recently has developed a specialist recruitment presence in the supply chain and logistics sectors.

Will Clark, 3i director, said: “We have built a strong relationship with RK Group and have supported the company as it has grown its business and branched into new geographic regions as well as extended its activities into new disciplines. This is another successful growth capital deal for 3i, supporting value growth through a minority investment and backing a strong team in an interesting market.”

The 3i deal team was led by director Will Clark. RK Group received corporate finance advice from Stuart Moss of Rickitt Mitchell and legal advice was provided by Paul Devitt and Philip Goodstone of Addleshaw Goddard.