Clearwater advises Palatine Private Equity on its investment in Anthesis Group

Transaction

Palatine Private Equity on its investment in Anthesis Group

Buy-side

Undisclosed

Role

Adviser to Palatine Private Equity on its investment in Anthesis Group

Sector

Business Services

Region

United Kingdom

Clearwater has advised Palatine Private Equity (Palatine) on its acquisition of a significant minority shareholding in Anthesis Group (Anthesis), a fast-growing global sustainability specialist, supporting its commitment to deliver positive ESG outcomes and its first-mover status in mid-market impact investing.

Established in 2013, Anthesis has grown to a turnover of €46m (£40m) (FY2019) and is ranked in the prestigious Sunday Times Fast Track 100 as one of the UK’s fastest-growing private companies, and the International Track 200, for its fast progress in international sales.
Headquartered in London, with a global workforce of 600 consultants across 17 countries, Anthesis supports leading companies, cities and organisations with financially driven sustainability strategies, underpinned by technical expertise. Its clients include 25% of the FTSE 100, 65 of the Fortune 500, and world-leading brands such as Amazon, Target, Kimberley-Clark, and Nestle.

The business has recorded annual organic revenue growth upwards of 20%, and achieved double digit growth in 2020.

Following Palatine’s investment, Anthesis will benefit from its award-wining and pioneering ESG framework, unique expertise in returns-focused impact investing, and its highly successful track record in buy-and build, which has included completing more than 200 acquisitions to date. The investment will enable Anthesis to scale at pace, organically and acquisitively, across borders and disciplines, and accelerate its impact through digitisation.

The acquisition combines investment from both Palatine’s Buyout and its Impact fund – which is the first dedicated returns-focused impact fund launched in the mid-market to back profitable companies which have a positive impact on the environment or society.

We have 10 years to effect change. Our market is now awake to the reality of climate impact and the need for unsustainable brands and organisational models to transform. Anthesis is positioned in the middle of these commercial and sustainable performance drivers. We are constantly looking at how we can scale our impact by helping our clients navigate through these constraints, risks and opportunities. While we have achieved strong growth since the company was formed in 2013, we need to accelerate progress, and I’m delighted that Palatine are joining us on this journey. Palatine understands that the way business repositions their brands and operations to become a force for good will determine future performance, or more relevantly sustainable performance.
Stuart McLachlan, Co-founder and Chief Executive, Anthesis Group

Anthesis is an outstanding purpose-led business and a trusted partner to global, household name brands, major corporates and forward-thinking cities, as they work to address one of the great social and economic challenges of our time, sustainability. Anthesis’ mission-driven approach aligns with our long-term commitment to place purpose and responsibility at the heart of our investment strategy. We see tremendous growth potential as more progressive businesses seek out expert support to embrace sustainability in a meaningful way. We are thrilled to be working closely with Stuart and the Anthesis team and take the business to the next level.
Beth Houghton, Partner and Head of the Impact Fund, Palatine

It was a pleasure to advise Palatine in this transaction, and to support their commitment to investing in sustainability focused businesses. Anthesis is a standout leader in its market with a great reputation, and we are certain that through Palatine’s investment it will go from strength to strength and continue to grow its service offering in the future.
Marcus Archer, Managing Partner, Clearwater

We are delighted to have worked with Palatine to secure a flexible funding package that will allow the business to support its working capital needs and execute its ambitious growth strategy. Anthesis is in a great position to utilise Palatine’s expertise and will continue to grow as specialists in its field.
Chris Smith, Partner, Clearwater