Risk Capital Partners has sold its stake in Mayfair Gaming, a UK-based independent bingo operator, which it bought in June 2004 when it supported a management buy-in of the business. Hermes Private Equity has bought Mayfair Gaming for an undisclosed amount. Risk Capital Partners paid £18m for Mayfair Gaming (known as Riva Bingo) in 2004 in a funding package that was supported by Royal Bank of Scotland. The bank has remained supporting the business through this latest deal.
Risk Capital Partners has said it has made 2.2x multiple on its investment, equivalent to an IRR over the period of 62% on its investment. Mayfair Gaming has eight bingo sites in the UK, soon to be expanded to nine.
Hermes Private Equity and Mayfair Gaming’s management intend to grow the business through a niche roll out targeting locations appropriate for a smaller operator to serve a local customer base. Justin Ward of Hermes Private Equity said: “There is interesting potential to grow both organically and through acquisition of small operators in what remains a very fragmented market.”