The partners of residential and commercial property consultancy Cluttons, one of the most famous names in the UK real estate brokerage world, have completed a management buyout.
Private equity investor TREUN Capital has been enlisted to advise Cluttons on "fully unlocking" its 220-staff residential, connectivity, workplace, and sustainability businesses. The management buyout marks the end of the strategic property consultancy’s relationship with previous investor Rcapital which backed a restructuring of the business in 2017.
That restructuring included a pre-pack administration that enabled liabilities under its pension scheme to transfer to the Pension Protection Fund with existing pensioners and deferred members protected in line with their policies.
Under the new ownership, James Gray continues as chief executive and Nicholas Potter continues as chief financial officer, while partner John Gravett is promoted to the new role of managing director.
Alan Froggatt, former chief executive for Europe at CBRE, has been appointed non-executive chair of the board with Catherine Spitzer, former managing director of Bidwells, also appointed as a non-executive Director. The teams said the duo's contacts and experience of "growth and organisational development bring extra insight and opportunities to Cluttons".
TREUN Capital is a long-term private equity investor set up by industry specialists to advise mid-market businesses. They invest equity to advise leadership teams looking to grow faster and with more certainty. The Cluttons team said it selected TREUN Capital as its investment partner for its "track record in long-term growth investment and because their values are closely aligned".
James Gray, CEO of Cluttons, said in a statement: “The last few years have been pivotal for Cluttons in building a leadership position in the management, sustainability and connectivity driven activities of professionally managed estates, particularly within the dynamic and ever-growing national energy and digital infrastructure sectors.
"The unique combination of digital connectivity and sustainability advice we provide is critical to the delivery of both government and client net zero ambitions. Alongside our residential, infrastructure and workplace strategy expertise, these strengths enable us to create value for our clients at every stage of the property lifecycle and we will continue to leverage from them as a key part of our growth ambitions.”
Cluttons' management and strategic consulting focus reported revenue growth of 25% to £25 million in its most recent full year results. It has also been investing in geographical expansion and modernisation, and recently took a lease at a new sustainable City office building at Yarnwicke on Cannon Street, London. In 2021, it launched a Northern hub in Manchester and has now signed a 10-year lease at 26 Cross Street, part of the St Ann’s Square conservation area in Manchester as well as hiring in Newcastle, an area the business is also growing.
Cluttons received legal advice from Pinsent Masons, corporate financial advice from Ulmus Advisory, and advice on tax matters from RJP. TREUN Capital received legal advice from Shoosmiths and financial advice from HMT.
Cluttons employs over 220 people across offices in the UK, providing commercial and residential property services, including property management, valuation, corporate occupier services, estate agency and consultancy.