MBO of NFA and NFA Partnerships

Sovereign Capital, the UK private equity Buy & Build specialist, today announces that National Fostering Agency (NFA) and its sister company NFA Partnerships (“NFAP”), have completed a management buyout and raised additional capital in a transaction in which Graphite Capital is replacing Sovereign Capital as its principal shareholder.  NFA and NFAP together form the UK’s second largest independent fostering agency with 16 offices nationwide.

Fostering is a key public service, which enables local authorities to protect and support Looked After Children in an environment which more closely reflects family life than residential care. Independent fostering agencies work closely with local authority social workers to identify and support suitable foster carers for individual children on a case-by-case basis. Fostering enables children, where appropriate, to return to their birth families at a future date.

NFA has grown rapidly since Sovereign invested in the business in 2006, more than doubling the number of foster children placements and completing six acquisitions.  The existing management team will continue to lead the company.  

Iain Anderson, NFA’s chief executive, said: “We place the needs of Looked After Children at the centre of what we do and provide support around the clock to foster carers who devote much of their lives to this important role. We aim to partner with more Local Authorities across the UK based on the high quality of our service. This transaction gives us additional financial resources to achieve this.”

Dominic Dalli, Partner at Sovereign Capital, commented: “NFA and NFAP have epitomised our sector-led, Buy and Build approach, with all of the acquisitions made being generated directly. We are very proud of NFA’s market-leading reputation and management team, both of which have been key aspects identified by Graphite Capital.”