Quantuma and KBS – part of the K3 Capital Group plc – have provided lead advisory services on the sale of Compliancy Services to a management buyout (MBO) funded by Ethos Partners LLP.

Founded in 2003, Hitchin-based Compliancy Services provides compliance consultancy and regtech services to a range of regulated financial services clients. It helps businesses become authorised by the Financial Conduct Authority (‘FCA’) and the Prudential Regulation Authority (‘PRA’), and manages their ongoing compliance and regulatory obligations.

The sale will enable the company to continue to grow, working with its clients as a trusted compliance partner, delivering cost-effective solutions as the regulatory landscape continues to increase and evolve.

It also facilitates the retirement of founder Iain Stephen, with majority shareholder and current chairman Ben Mason retaining a significant minority shareholding in the business and staying as a non-executive director, and Philip Naughton becoming CEO.

The Quantuma team, led by Ian Barton and Philippa Robinson, worked with the shareholders to design a structure for the business to move forward into its next phase of growth, allowing for the retirement of Iain Stephen, as well as equity incentivisation for Philip Naughton. The team ran a process to identify a private equity partner who could work with Ben and Philip to shape the future of the company. Financial details of the investment are undisclosed.

This deal follows a significantly active period for the Quantuma corporate finance team, completing eight transactions in the last fortnight, at a combined value of over £130m.

Ben Mason, non-executive director at Compliancy Services, commented: “We worked incredibly closely with Quantuma’s team to secure the sale of our company to a MBO backed by Ethos. This process was made seamless by Ian’s comprehensive knowledge of potential buyers, which meant he was able to efficiently match us with a buyer that suited our approach and values. Ian and Philippa supported a process that facilitated a sale in less than three months from when we first met the buyer. We could not have found our buyer or completed the process without Ian and Philippa’s expert assistance.”

Ian Barton, managing director at Quantuma and lead advisor on the deal, added: “In an efficient and driven process working with Ben, Philip and Iain we found an excellent funding partner for Compliancy Services in Ethos, who moved from first meeting the business to executing the transaction in just eight weeks. It took significant effort from all sides and their advisers to complete this transaction to the agreed timetable, especially during a national lockdown. As a partner, Ethos provides Compliancy Services the tools it needs to strengthen and take the business forward. We are pleased that we were able to match both and look forward to following news of the future growth of the business in the coming years.”


Notes to Editors Quantuma is a leading business advisory firm which works with businesses at the key milestones, delivering bespoke solutions to help clients take advantage of opportunities and overcome a range of operational and financial challenges, enabling them to achieve their business objectives and ambitions. The business has 21 offices, including 17 in the UK, two international offices in Cyprus (Nicosia and Paphos), one in Mauritius and one in The Cayman Islands.