Private equity firm Equistone Partners Europe has taken a majority stake in Nexus Vehicle Rental from Phoenix Equity Partners.

L-R: John Ellis, David Brennan and Alex Cook will remain in place on the Nexus management team

Financial terms of the deal have not been disclosed but Nexus has confirmed the existing management team, led by David Brennan, John Ellis and Alex Cook, will continue to lead the business.

Founded 22 years ago and based in Leeds, Nexus provides corporate, credit hire and leasing customers, giving access to 550,000 vehicles across 2,000 locations via its inhouse IRIS tech platform. It’s said to be the UK’s largest rental supply chain and reached the milestone of more than four million rental bookings in 2022.

The mobility company has a strong record for growth, including over the four years since Phoenix Equity Partners bought a majority stake from Bowmark Capital in 2018. It’s recently moved into the plant hire and taxi market, as well as investing further in its Nexus Connect mobile app that streamlines the rental process for end-users whilst on the move. Plans for 2023 include new product developments that will support customers’ changing mobility requirements.

David Brennan, executive chairman at Nexus, commented: “Over the past four years, we have grown significantly. Phoenix has been a fantastic partner, helping us to meet our ambitions and supporting us through the pandemic. Equistone’s investment sets us up for our next exciting chapter of growth as one of the UK’s leading tech-driven mobility providers. Not only does it demonstrate the confidence in the business, but it is testament to the outstanding performance of our senior management and wider team.”

The Equistone investment was led by partner Andi Tomkinson, investment director Seb Leusch and investment manager Will Copeland, who will work alongside Nexus’ management team on the next stage of the journey. Equistone added that it typically invests €25m-€200m (some £22m-£177m) in mid-market companies.

Andi Tomkinson, partner at Equistone, said the company’s Manchester office had been tracking Nexus for a number of years.

He added: “Nexus operates a unique business model very effectively, and provides a great service to its customers and suppliers where the attractiveness of its proposition has been demonstrated over many years. The business, led by an impressive management team, has navigated the challenges presented by the pandemic and the vehicle supply shortage admirably, demonstrating its resilience and its ability to provide a top-quality service to its customer base to whom vehicle supply is often ‘mission-critical’.”

Tim Dunn, partner at outgoing investment partner Phoenix, also commented: “The Nexus team has been a joy to work with over the last four years and we know that David, John, and all their colleagues will continue to prosper with their new partner, Equistone. We wish them all the best for the future.”