Julian Carr and Brian Phillips set up Ethos Partners as an innovative private investment office to invest their own capital and to invite their growing network of high-net-worth investors to invest alongside them.
After 25 years in the UK private equity industry, it was apparent to them that their PE investment returns had been significantly (and consistently) higher than those from their personal pension and other investments in quoted markets during the period.
Ethos focuses on smaller private equity opportunities (£3 million – £10m of equity), where Carr and Phillips see an opportunity to generate attractive returns by leveraging their networks and helping shape the strategy of investee companies. “When we observe other listed and unquoted asset classes, domestic and global, we struggle to identify any which are likely to generate comparable returns; particularly when assisted by investor relief tax rates at 10%”, says Carr.
Carr and Phillips aim to combine the versatility of a private office with the professionalism of the established private equity institutions where they learned their trade (LDC, Hg Capital, Bridgepoint, and L&G Ventures) and have built up a professional team of five investment staff from disciplines including strategy consulting, accounting, investment banking and technology.
Ethos’ portfolio of assets includes Nu-Heat (specialist supplier of underfloor heating systems)
and TeamSport (largest operator of indoor go-kart tracks in the UK). Its most recent investment – the buyout of Bracknell-based Miles 33 (media software business) – was voted Mid-Range Deal of the Year at the recent 2019 Thames Valley Deals Awards by a room of 350 industry peers.
Ethos aims to complete three deals per annum as it grows its network of high-net-worth investors