Private Equity regional charm offensive, yet more food deals and awards update
And why Mobico hit the brakes on its American school bus operations
Hello Rainmakers,
This is your weekly freebie for browsers of the Rainmakers, with insights from around the country by our team of reporters in each region.
Paid subscribers have this week had an insight into M&A in the food sector and a missive from our very own Secret Investor.
The week before they were treated to a fantastic profile interview with Endless founder Garry Wilson.
Rainmakers subscribers usually get two unique pieces a week (when it isn’t Easter) but also full access to our back catalogue of investigations, scoops, and insights, including updates from The Secret Investor, interviews with entrepreneurs, and the leaders from VC and PE investors the likes of Endless, River Capital, Foresight, Mercia, Puma and LDC. To receive new posts and support our work, consider becoming a free or paid subscriber, or sign up for a free trial...
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Private Equity’s regional charm offensive hasn’t paused despite getting a reprieve from some of the existential threats a Labour government may have once posed.
The chief executive of the British Private Equity and Venture Capital Association (BVCA) Michael Moore was in Leeds in April to push out a report that found that businesses backed by private capital generate £10bn for the Yorkshire and Humber economy each year.
The former coalition government minister said it showcased the industry’s importance to growth in the nations and regions of the United Kingdom more broadly. Presumably other reports will follow.
He said that in 2024 alone, private capital invested £1.5bn in Yorkshire and the Humber businesses. Private capital employs an active ownership model which is a hands-on approach that helps drive value creation in portfolio companies through strategic and operational improvements, whilst supporting wider economic development.
As of 2025, private capital supported 533 businesses in the region, a 15% increase compared to 2023. Venture capital firms are playing a significantly larger role in the Yorkshire economy compared to a couple of years ago, backing 257 businesses, 25% more than in 2023. Private equity currently backs 276 businesses in the region consistent with 2023. These businesses are major employers in the region, supporting over 162,000 jobs in Yorkshire and the Humber - a 30% increase compared with 2023.
Moore said however, that while there is much to celebrate about the scope and scale of investment in the region’s businesses, it could be even more substantial and close the gap with other parts of the country.
“Policymakers, regulators, and industry all have a role to play in helping to facilitate greater levels of investment in the region, to ensure that opportunities are not lost.”
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Mobico Group has hit the brakes on its American school bus operations, selling the business for £457m, but investors weren’t along for the ride.
Shares of the Birmingham-based transport firm skidded 30% after the deal was announced, sending the company straight to the financial naughty step.
Formerly known as National Express, Mobico is handing over its School Bus division to I Squared Capital, a global infrastructure heavyweight that also owns Arriva.
The deal includes seven US factories, 2,300 staff, and a business that hauled in £105m in revenue last year.
Mobico expects to net between £275m and £290m from the sale and plans to use the cash to cut debt and polish up its financials.
But despite the payday, the company warned of a “significant statutory loss” caused by goodwill write-offs, vanishing tax perks, and continuing woes in its German business.
Terms include an earn-out of up to $70m, which is dependent on the future performance of the business.
The transaction is conditional upon certain customary conditions, including antitrust approvals, and is expected to be completed early in the third quarter of 2025.
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LDC-backed Deltron Group, a specialist in lift maintenance and repair, has acquired three more businesses as it continues to strengthen its footprint across the UK.
The Dudley-based company, which services elevators, platform lifts, and stairlifts to enhance safety, performance and longevity, has added Abacus Elevators (Liverpool), Total Lift Care (Lancashire), and Bourne Lifts (Dorset) to its growing portfolio.
Led by directors Scott Haywood and Lukas Schlenker, Deltron now maintains around 13,200 units for 3,700 customers nationwide.
The latest acquisitions bring Deltron’s total to eight since LDC’s minority investment in July. Earlier additions to the group include Metro Lifts (London), Elevate UK Lifts (Stourport-on-Severn), Elevator Group (London), A1 Lifts (Liverpool), and Lift Control (Livingston).
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Bakkavor has undergone a recipe for change, stirring up a £50m deal to hand over its Chinese business to Lihe Xing Food Technology.
The deal wraps up seven factories, 2,300 staff and £105m in 2024 revenue, all set to reduce group debt and fatten profit margins.
CEO Mike Edwards said goodbye with gratitude after 20 years of growth in China, saying the new owner will bring plenty of local flavour.
The sale is expected to come to a boil in the second half of 2025, pending approval, just as rival Greencore’s £1.2bn takeover bid heats up, with the deadline now pushed to May 9.
Initially rejecting the offer, Bakkavor seems to be warming up to Greencore's offer, which could create a £4bn food giant.
Looks like Bakkavor has got plenty on its plate.
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With projections stating that the number of pensioners in the UK will rise by 14 per cent in the next 10 years, it's easy to predict that demand for professional post retirement financial advice should increase significantly.
Doncaster-based My Pension Expert now has the firepower to capitalise on this, having secured a £25m refinancing deal with digital lender OakNorth.
It means My Pension Expert - which is backed by Palatine Private Equity - has been able to pay down its existing lender Beechbrook in full, while also having enough cash for an acquisition facility for future strategic M&A.
The company, which provides independent financial advice to consumers nationwide via telephone and video conferencing, is not shy about its ambitions and says it has "big plans to grow - and grow fast".
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By Jonathan Summers Exec Chair, twisted loop
Following our conversations at the excellent Rainmakers 2025 conference in Manchester, a clear picture emerged: the appetite for AI-powered dealmaking in the community is high. But adoption continues to lag some way behind the ambition.
A common explanation for this is the significant hurdle posed by data security and data privacy concerns. It’s a recurring theme we frequently have to address at twisted loop.
But in the high-stakes world of M&A, where confidentiality is paramount, this caution is not just valid, it’s absolutely essential.
That said, appropriate caution doesn’t mean the immense potential of AI is off-limits.
Addressing these concerns head-on allows you to navigate the complexities sooner and realise benefits quicker. Secure AI is not only possible but truly vital to maintaining your competitive edge in today’s dynamic deal landscape.
So, here’s our quick Rainmaker’s guide to secure AI adoption. The key lies in two inter-connected elements: understanding the crucial differences between the types of AI tools available and implementing the right, practical safeguards.
Element 1: Know Your Tools
The first step is recognising that not all AI tools are created equal. There’s a critical distinction between Consumer and Enterprise AI models which is the first step to secure AI.
Consumer AI Models: These are your publicly accessible tools, like the standard versions of Claude, ChatGPT or Gemini that many of us use in everyday life. Whilst really powerful for general tasks, the underlying terms potentially allow for user inputs and data to be used in future model training.
The warning here is stark: Never ever input confidential client information, non-public deal data, or privileged communications into these public, consumer-grade AI models. Doing so means losing control over that data, with no security guarantees and open-ended risk.
Enterprise-Grade AI Solutions: Fortunately, solutions like dedicated private LLM deployments on your cloud, Microsoft Copilot for M365, or Google Workspace with Gemini Enterprise are built differently. They are designed specifically for business use with security and privacy at their very core.
The right enterprise platform brings key security features, often as standard:
• Data Isolation: Critically, your prompts and data are not used to train the provider’s public models. Your information remains your information.
• Security Controls: Expect robust encryption (both in transit and at rest), seamless integration with your existing company access management systems, and often options to disable data sharing or training inputs entirely.
• Compliance: These platforms are typically designed to meet stringent standards like UK GDPR, ISO 27001, and SOC 2, offering assurances needed for regulated industries. Many also offer private cloud or even on-premise deployment options for maximum control.
• Confidentiality: Strong contractual commitments from the provider will help to keep your data private, including clear, transparent policies on data retention and deletion.
Some vendors even offer AI environments that operate entirely inside your own firewall, keeping all data internal and under your strict control. These aren’t just better for compliance; they give your team the confidence to experiment without compromise.
Think of it like this: using Consumer AI for sensitive deal work is like logging onto the free public Wi-Fi at the airport. Using Enterprise AI is like connecting securely behind your company’s VPN where nothing can be intercepted. Would you risk transmitting critical M&A analysis over an unsecured public network?
Element 2: Put up the Guardrails
Understanding the tools is the first step; implementing appropriate safeguards around their usage is the next.
Making AI an integral, secure part of your dealmaking framework requires thoughtful navigation. Guardrails that are well-crafted and right-sized for your organisation are essential – not to stifle innovation, but to guide it effectively.
Keep it simple, specific, and focused on enablement
Clear policy: Establish clear AI usage, governance, and ethics policies. Define what’s acceptable, what’s prohibited, and who is responsible.
Mandate enterprise solutions: Explicitly mandate the use of approved Enterprise-Grade solutions for any task involving sensitive or confidential information. No exceptions for client or deal data.
Data handling: Train teams on data minimisation (using only the necessary data for the task) and anonymisation techniques where appropriate for less sensitive exploration.
Access & monitoring: Implement role-based access controls for AI tools, set user limits if needed, based on roles or projects, and consider appropriate usage monitoring (always respecting employee privacy regulations) to ensure policy adherence.
Controlled testing: Create controlled ‘sandbox’ environments for testing new AI tools or specific use cases before wider deployment, allowing you to assess risks in isolation.
Decentralised education: Ensure everyone using AI tools understands the policies, the risks, and the firm’s expectations – this responsibility shouldn’t sit solely with IT or compliance.
Supplier due diligence: Apply rigorous due diligence to all AI vendors, especially those integrated with critical systems like your virtual data room.
Scrutinise their security posture, data handling practices, certifications, and contractual commitments.
Think of it like this: Consider a highly advanced diagnostic machine in a hospital; you wouldn’t let untrained staff use it on patients without clear protocols, training certifications, approved procedures for specific tests (policy and mandates), regular calibration (supplier DD and monitoring), and controlled training scenarios.
These rules don’t stop the diagnosis; they ensure the powerful tool is used accurately and safely for the benefit of the patient (your deal).
Hopefully this quick guide helps you get started with more confidence on your journey towards secure AI adoption. Our recommended approach remains straightforward: understand the tools, implement clear policies, prioritise enterprise-grade solutions for sensitive data, and start experimenting with low-risk use cases first.
This structured approach doesn’t just mitigate risk; it builds crucial trust. Your teams are far more likely to adopt AI effectively and responsibly if they know what ‘good’ looks like and they feel secure using them.
Confidentiality will always be a cornerstone of dealmaking. And as AI becomes more embedded in the process, those who master data security alongside innovation will be the ones who move fastest and safest. By addressing security concerns proactively, you pave the way for AI to become a powerful, trusted ally in the dealmaking arena.
How twisted loop can help
We unlock transformative business growth for ambitious leaders and progressive investors, by harnessing data and AI driven insights
Our strategies ensure you maximise market opportunities, build resilience, and sustain long-term success.
Get in touch and we’ll schedule a meeting to understand more about you and your business.
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TheBusinessDesk.com’s Rainmaker Awards return this summer and will showcase a wider cross-section of the region’s deals community.
The hotly-contested regional corporate finance awards will continue to recognise teams, individuals and deals, and the shortlist and winners will be decided on by the community, as always.
This year we have asked all firms to submit a short entry, along with the key deals they have advised on, to ensure our judges have the full information when making their selections.
Shortlists have now been drawn up at well-attended judging days. These shortlists will now be voted on by a wider group of people from across the community, on a strict one vote per firm basis, to decide our 2025 winners.
For tickets for the event, please click here to secure your seat in the North West, Yorkshire, or the West Midlands.
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