Investment Sector

The EOB sector in the UK offers a broad spectrum of investment opportunities.

The Sector

UK EOBs generate a combined turnover in excess of £30bn, representing about 3 – to 4% of the UK’s GDP. The number of EO Businesses is growing at an annual rate of 10% which has resulted in over 750 companies becoming employee owned – with half of these converting in the last three years.

Financial performance

The Top 50 EO businesses have increased productivity by over 6%, have grown combined sales by over 4% to £20bn, have increased operating profit by 5% and they employee just under 180,000 people.

Cross party support

Successive governments and opposition parties have promoted employee ownership as a solution to some of the challenges facing society. Half of all EO businesses have converted in the last three years.

Unique Opportunity

This well-performing sector seeks alternative financial support as more traditional funders often don’t understand it and are therefore averse to supporting it; Capital for Colleagues is capitalising on this market opportunity

Alternative Asset Class

Investors are looking for an alternative to the traditional private equity and venture capital model. C4C and its investments in EO businesses provides an ideal opportunity for portfolio diversification.

Impact Investment

Employee Owned Businesses tend to be managed in a more open and inclusive way, which delivers noticeable social benefits internally and in the communities in which they operate.

Patient Capital

There are currently very few equity funders in the EO sector. Capital for Colleagues invests both equity and debt to enable the EO business to become a successful, sustainable company.

Strong Pipeline

There is no shortage of investee companies, and Capital for colleagues has direct access to a wide network of contacts within the EOB sector, including the Employee Ownership Association