Travel entrepreneurs back new investment fund
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Several seasoned travel entrepreneurs have backed a new travel investment fund launched by Stone Ventures.
Stewart Baird, John McEwan, Ian Brooks, Craig Burton and Matt Ansell have all helped launch Pebble Travel: Investors alongside a small business private equity fund.
Pebble is looking to invest in small, niche travel companies based in the UK with turnover between GBP2 million and GBP20 million, where perhaps the owner is looking to retire or sell, or to support tour operator/dynamic package model companies where investment can fuel growth.
The funds are provided by the directors and investors who will play an active, non-executive role.
Baird is chief executive of Stone Ventures having previously worked for Eurostar and Virgin and has also sat on the board of ABTA and Federation of Tour Operators. He is now currently also on the board of Chill Factore and Ski Solutions.
“Stone Ventures launched in 2010 and it became apparent that private equity firms are very generalist and it puts people off, so we wanted to set up a firm that offers intellectual support as much as the financial,” Baird told Travel Daily. “Most small businesses do not think private equity firms are interested in them but for us there is no-one too small and we are looking to build on the aspirations and ambitions of those small companies.”
As the economy and travel sector recovers Baird also sees the potential in helping independent businesses remain stand-alone.
“The travel sector is unusual as the regulation that sits behind it is unprecedented; cash flow is difficult but the regulation as well means that as the sector bounces back some businesses won’t be able to continue and will cease to exist. That’s not good for the sector, we need a good flow of growing businesses,” he added.
McEwan chairs the advisory board of Pebble Travel having previously held management roles at Thomas Cook, TUI and Advantage. He told Travel Daily there are a ‘great deal’ of companies he believes will be interested in Pebble Travel.
“I know of speaking to private equity firms myself that they are focused on large businesses but there are lots of small and medium-sized companies out there that could be success stories if they had more support. Pebble Travel is not just about investing money but to deliver expertise whether it’s in finance, marketing or other areas,” he explained.
“We are expecting a great deal of interest on this; there are many companies that fit the bill where some are looking to retire and might need the financial support or expertise to keep the business running. We’re looking at niche businesses too that have the potential to grow with a strong management team, but need a push to speed up development.”
Baird said he also expects the advisory board to grow. The other board members include Ian Brooks who previously worked at Virgin and co-founded Medhotels and Ideal Cruising, while Craig Burton is managing director of Ski Solutions, which Stone Ventures invested in three years ago. Ansell is senior investment manager at Stone Ventures and is a chartered accountant.
Stone Ventures was set up in 2010 and has investment over several sectors including manufacturing and legal services.
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