Private equity firm buys Southeast-based partnership homebuilder | New

Private equity firm Cabot Square has acquired a majority stake in south-east England-based partnership homebuilder the Chartway Group.

The investment will support the Chartway Group’s strategic growth to £100 million in revenue and is being made by Cabot Square subsidiary Public Sector Plc (PSP) to create a new merged group.

Cabot Square Partner Keith Maddin said: “Chartway Group is a leading South East England based partnership homebuilder with a turnover of over £100m and increasing profitability year after year since its creation in 2009.

“We particularly like their small-cap, vertically-integrated business model, and the opportunity to help address the shortage of energy-efficient, low-carbon housing. Their ability to work across all tenures means they are well positioned to adapt to changing market conditions over time.”

He said the new group would create a high margin and high return on the capital based UK business.

Ian Savage, founder of Chartway Group, will be chairman of the new group and will remain a significant shareholder, along with a number of other senior Chartway executives. Steven Cresswell, who joined Chartway from the Thakeham Group, will become the group’s new chief executive, while Paul Brown, chief executive of PSP, will continue to lead the strategic asset management business.

Savage said, “We are very pleased that Cabot Square has recognized Chartway’s progress to date and their experience in investing and building platforms will help us pursue our next phase of growth. It also represents a fantastic opportunity for our staff and customers.

London-based Cabot Square is a specialist buyout firm that invests in European companies focusing on companies that deliver asset-based returns as well as positive ESG outcomes.

It recently acquired a majority stake in offsite construction firm Premier Modular Group.