gunnercooke Private Equity advises Telcom Group on £63m investment deal

July 8, 2021

gunnercooke’s Private Equity team has advised UK internet service provider Telcom Group on a major £63m investment that will see the company enter a major period of growth.

The investment from specialist alternative asset manager, Gresham House, came through its British Strategic Investment Fund (BSIF). BSIF was established to invest specifically in the sustainable infrastructure and housing sectors, both identified by the UK government as structurally important areas requiring local investment.

Manchester based Telcom Group is a full-stack high-speed internet service provider established in 2014 and operating three brands – Telcom, ClearFibre, and WeFibre. The group also owns full-fibre infrastructure via Telcom Infrastructure and infrastructure services through Pioneer.

The investment will enable the business to accelerate its delivery of ultrafast and reliable fibre connectivity to commercial and residential properties across the UK, underpinned by its own network infrastructure. Outside Manchester, the group’s focus will be on building fibre networks in key Northern and Midlands powerhouse cities.

gunnercooke’s multidisciplinary legal and commercial teams advised on all facets of the agreement, with gunnercookes Chris Baldock being appointed Telcom Group’s Chairman. Legal advice was led by Private Equity Partner Simon Woolley as well as Harriet Collins, Rachel Spink, Rebecca Holden, Julian Moran and Elle Berrett.

Chris commented: “The board of Telcom is delighted to be working with Gresham House in what is a pivotal moment in the company’s evolution, as it will enable the acceleration of our planned roll-out of high-speed connectivity across all of our target markets.”

Simon Woolley added: “The structure, capability, and extensive resources that we have within gunnercooke enables us to engage, support and deliver complex agreements within the M&A and Private Equity markets. We are delighted by the outcome and wish the Telcom team every success.”

Oakley Advisory Limited provided corporate finance advice to Telcom, and Finance and tax consultancy RSM UK, management consultancy Analysys Mason and law firm Shoosmiths advised Gresham House.