Hi Mark, can you give us a quick overview of your professional background and tell us why you established Velocity Partners?
I spent four years at PwC whilst qualifying as an ACA before joining FTSE 100 private equity firm 3i. During the 10 years I was there, I worked on many different types of transactions, but upon moving to Aberdeen I ended up specialising in Energy investments. I then moved to private equity firm Candover / Arle, a generalist firm but very active in the Energy space. Since 2015, I was Chief Operating Officer at specialist energy private equity firm Bluewater. I was responsible for sourcing, diligence, execution and portfolio management, managed the Investment team and was on the Investment Committee for Fund II. Over the course of my 25-year career, I have had worked on varying transactions as buyouts, growth capital, ‘buy and builds’, start-ups, acquisitions, IPOs, public to privates, corporate carve outs, and private transactions across Europe, the US, LATAM, the Middle East, and Asia. I have also served as a director on over 20 boards. In short – I’ve seen plenty!
In May 2023, myself and Neil Hartley, who I have known since my 3i days, decided to establish our own firm, Velocity Partners. The timing felt right for multiple reasons and our drivers, values, and vision for the future of the firm and the energy and industrials space were in alignment, so we decided to team up and combine efforts. We believe there is a large target market for investment opportunities within the industrials and conventional energy supply chain. The energy transition is necessary and exciting, but in the rush to move into new green opportunities, it’s easy to forget that today’s existing energy and industrials infrastructure needs to transition too. There is tremendous value in helping responsibly-run, profitable businesses pivot effectively.
Velocity recently completed the acquisition of Moreld, a group of three engineering businesses based in Norway. Could you tell us more about the transaction and why it was chosen as the inaugural Velocity deal?
Moreld is a business we have known for several years. It is a multi-discipline engineering business with a long history and an established presence on the Norwegian Continental Shelf (NCS), a region that is undergoing a period of significant capital investment due to the importance of the basin in providing energy security for EU whilst going through an extensive decarb program so that oil & gas can be supplied in the most environmentally responsible way. We invested alongside McIntyre Partners to acquire Moreld as we firmly believe the business is perfectly placed to deliver enduring value to the offshore energy sector for decades to come. This strategic investment aligns seamlessly with our overarching objective of fostering sustained growth and resilience within the sector. It also met our requisite investment parameters: long established and stable, with consistent generation of free cash flow and a seasoned management team. All critical factors that underpin our investment rationale.
How does Velocity work with its management teams? How do you maintain strong relationships and collaborate effectively with management teams to achieve mutual goals?
We work as partners with our management teams to create an agreed growth plan with an aligned exit timeline. Our typical value creation strategy centres around growth: strengthening existing partnerships and exploring acquisitions through strategic M&A. We also look to appoint board directors to bring rigour, experience, and strategic insight to the table.
Our relationship with management teams mirrors our values as people and as a firm. In the end, private equity is a people business. The best relationships with investee companies are founded on a mutual respect and shared goals. I see Neil & I as an extension of our portfolio companies’ management teams. Adding value through the experience we have gained over the past 25 years, and transparent with aligned goals and in terms of value creation and ultimate exit. We approach partnerships as collaborators, eschewing micromanagement in favour of facilitating growth.
As the firm scales and you look to recruit additional team members, could you tell us a bit more about the specific type of culture are you building and your vision for Velocity’s future?
The Velocity culture will mirror the values of its founders. Velocity’s people are straightforward, transparent, and hardworking. Our team is expected to work in a collegiate and collaborative manner and as we scale the business, the people we are looking for will be expected to be humble, good listeners and curious to new ideas.
We train, nurture and grow talent so not only does the team becomes first rate at finding, executing, adding ‘Velocity’ and exiting investments, but also becomes the future leaders and owners of our business. Ultimately, we are looking to create a fun and stable working environment where the business and people who work in it come first.
Thanks Mark!