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FRP Corporate Finance has advised residential managing agents, Encore and Queen’s Park Equity (QPE), on the sale to leading international property management group, Odevo.
Founded in 2004, Encore is one of the UK’s largest award-winning RMAs, providing a range of estate management services properties from its UK offices across Cambridge, London, Sandhurst, Nottingham, Manchester, Bristol and Peterborough.
FRP Corporate Finance team, led by partner Clive Hatchard, director Richard Boyden and associate director Chris King, were the retained sell-side advisers to the shareholders of Encore, having originally advised the group on the investment by QPE in March 2021.
The sale of Encore represents QPE’s inaugural exit from its £202m debut 2020 vintage fund and generates an initial return of 5.9x money multiple and 63% IRR, with deferred payments expected to increase this to 7.6x MMx.
With QPE’s investment and partnership, Encore has grown revenue by over 190% and EBITDA by over 250%, further developed its longstanding relationships with housing developers and built upon its track record of delivering high-quality services to its customers.
In addition to “strong” organic growth, QPE supported the business to originate and complete three complementary add-on acquisitions, expand its nationwide footprint and invest significantly in technology and people. Today, Encore has over 230 office-based staff and around 280 onsite team members.
As part of Odevo, Encore now has the opportunity to leverage its strengths and expertise, whilst simultaneously benefitting from the collective resources and support by Odevo in crucial areas such as technology, financial services, human resources and compliance.
For Odevo, the acquisition further strengthens its UK presence as it continues their journey to build a leading international property management group, leveraging the combined power of people and technology. Odevo now oversees the management of more than 1.5 million homes globally.
Hatchard said: “It has been remarkable to watch the growth of Encore over the years – from advising them through the initial investment from QPE, to supporting acquisitions, and now the exit of QPE and sale to Odevo, we have stayed close to the team and supported their journey.
“With favourable market conditions including high levels of consolidation in the sector, the time was right for a transaction, and we are confident that Encore has found the right home with Odevo, to continue to progress their ambitious growth plans with the support of a global industry leader.”
Alison Price, QPE Investing, said: “We are delighted to have had the opportunity to partner with Joaquim, James and Jeremy. It has been a real privilege to support the business to develop through the delivery of a market leading organic growth strategy, the completion of three follow-on acquisitions, and the significant investment in people, tech enablement and processes.
“It’s been a pleasure working with Clive and his team on this transaction. Given their sector experience and relationship with Encore management, they were able to support us in delivering a smooth transaction for all parties.”
Joaquim Fillola, Encore CEO, added: “Thanks to QPE’s support, we have been able to invest heavily in our market-leading technology, our processes and, importantly, our people. We are hugely grateful for their support and we look forward to continuing our success in the next chapter with Odevo.
“In Odevo we recognise a culturally aligned partner who shares our passion for providing market-leading service by combining professional, friendly people with powerful technology. We’re delighted to continue forging our unique identity and operating independently while working with Odevo to constantly enhance our service offering for our clients, customers and residents.”
