Cabot square capital

Cabot Square Capital acquires majority stake in Chartway Group

Cabot Square Capital has acquired a majority shareholding in housebuilder Chartway Group.

The investment — which was made by Cabot Square’s existing portfolio company Public Sector PLC (PSP) to create a new merged group — will support the strategic growth of Chartway.

Following the acquisition, Chartway’s founder Ian Savage will become chairman, while COO Steven Cresswell will become the new group's chief executive, who will be working together with Paul Brown, CEO at PSP.

Ian and a number of Chartway senior executives will remain significant shareholders.

The acquisition debt funding was provided by Pricoa Private Capital.

Keith Maddin, partner at Cabot Square, said: “Chartway’s ability to work across all tenures of housing means it is well placed to adapt to changing market conditions over time.

“We particularly like its capital-light and vertically integrated business model, as well as the opportunity to help address the shortage of low-carbon, energy-efficient housing. 

“The new group is well positioned to benefit from a number of attractive growth opportunities, including synergies between the two businesses — together, they can build a high margin and return on capital asset-based UK business that can also benefit all stakeholders.”     

Ian commented: “We are very pleased that Cabot Square has recognised Chartway’s progress to date, and its investment and platform building experience will help us continue in our next phase of growth.”

Steven and Paul stated that they were excited to be working together, adding that the partnership would see Chartway enhance PSP’s delivery capabilities, while PSP would help Chartway expand its relationships with the public sector.

This follows Cabot Square’s recent acquisition of Premier Modular, which led to the creation of the Premier Modular Group.

Advisers to the latest transaction included KPMG, Stephenson Harwood, Herbert Smith Freehills, BDO, Savills/Mace and EY.

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