Latest NVM exit delivers 4.2x return

NVM Private Equity (“NVM”) has announced that it has sold its stake in Reading-based  Pareto FM, an award-winning and ESG-driven provider of technical and facilities services to the built environment delivering a 4.2x return.  

Pareto, which recently featured in the 2023 South Fast Growth 50 list has developed an extensive reputation having disrupted the facilities management industry through leveraging strong employee and customer engagement coupled with an exceptionally strong ESG agenda.

Only last month the company won the Institute of Workplace and Facilities Management Impact Awards in the ‘Change Management’ and ‘Best SME Led Innovation’ categories, highlighting its reputation as a trusted and agile platform with a focus on customer advocacy and innovation.  

The business, founded by Andrew Hulbert in 2014, was set up as an antidote to large, inflexible service providers. NVM first backed Andrew in March 2021 as part of an £18million management buy-out which included the appointment of incoming Chair Mark Rogerson, formerly Chair and NED of Bellrock Property and Facilities Management.  

Over the course of NVM’s investment, Pareto has invested in technology and more importantly people, with the business increasing its number of employees from 141 to 509 today. This investment has enabled the company to achieve a near threefold growth in revenues in under 3 years.  

Pareto has continued to attract significant sector attention driven by its refreshing approach to employee and customer engagement which has ultimately resulted in a secondary buyout led by Swiss headquartered investment firm, Pictet Alternative Advisors. 

Andrew Hubert, Founder and Vice Chair of Pareto FM said “I would just like to express my sincere gratitude to NVM for the incredible journey we have been on over the last three years. From the initial meetings to the exit, they have been exemplary. NVM, led by David Rolfe, believed in Pareto from our very first meeting. Their foresight, investment and ambition ensured we achieved remarkable success in a short timeframe.” 

Mark Rogerson, Chair of Pareto FM said “The Pareto investment journey under the ownership of NVM has been an example of how private equity should work; management and investors working together to deliver exceptional results. This has been achieved through NVM’s openness, collaboration, and clear sense of purpose. They have overseen the business with compassion, sincere encouragement and deep-rooted professionalism and I am grateful for their support and solidarity. It is, therefore, with sadness that I say goodbye as Chair to this amazing business. Pareto will remain very close to my heart, especially all the amazing people led by two of the industry’s most accomplished professionals in Dave Richards and Andrew Hulbert”.  

David Rolfe, Investment Partner of NVM said “As soon as I met Andrew, I knew he was capable of something brilliant. His energy and passion for creating a differentiator in the FM market has been exceptional and we are delighted to have wholeheartedly supported his approach, whilst achieving a 4.2x return for our investors. The team that has been assembled have all contributed and with the assistance of Mark Rogerson as Chair, and more recently Dave Richards as CEO, Pareto is well positioned for the next phase of growth, and we wish the team well as they continue to disrupt the market.”