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Three Hills announces four exits across THCS I, THCS II & THCS III

4 April 2024 Investment Activity

Three Hills is pleased to announce that it has recently progressed four exits across its prior capital solutions fund vintages: THCS I, THCS II and THCS III. This is a notable achievement in short succession given the somewhat challenging M&A environment over the last 12-18 months, and further highlights the benefits of Three Hills’ flexible funding approach, which allows for multiple exit avenues to be explored with entrepreneur- and founder-led businesses. As pledged to investors last year, Three Hills’ goal was to improve DPI for investors in 2024, and thanks to recent distributions resulting from these realisations, this has been achieved.

MA Group (THCS II)

  • MA Group is a leading niche provider of landing gear systems and composite aerostructure components for helicopters and medium-sized aircraft
  • Since its initial investment in April 2018, Three Hills has actively supported MA Group with its ambitious growth plans, having executed four acquisitions and entered three new geographies (UK, USA and Canada)
  • Three Hills helped improve the operational infrastructure of the business, as well as diversify underlying revenue streams to be a better blend of commercial and defence aviation, which has in turn seen EBITDA levels grow by over 70% compared to the levels at entry
  • This deal sees Three Hills sell 100% of its equity stake and fully exit the business


  • WPI is a leading civil engineering, groundworks and surfacing services provider to homebuilders
  • Throughout the c.5.5-year holding period, Three Hills has worked closely with management to achieve organic growth by diversifying the client base, securing several long-term high-quality clients, and improving operational infrastructure, helping to reduce overheads
  • Despite facing several macroeconomic headwinds, not least COVID-19, and the prevailing UK housing crisis, WPI remained profitable and cash-generative throughout. This is also a reflection of Three Hills’ underwriting process, which valued the business for its resilient nature and downside protection
  • In January 2024, THCS II received a full repayment of its loan, and the amounts pursuant to the put option, resulting in a full exit

Dedalus (THCS III)

  • Dedalus is a leading pan-European player for healthcare software solutions used in hospitals, laboratories and general practitioners
  • Since partnering with Three Hills, Dedalus has completed 14 acquisitions and achieved its ambitious growth objectives of expanding into 20 new geographies, notably the UK, where a subsidiary was established
  • In October 2023, Three Hills, Ardian, and Giorgio Moretti (Dedalus’ Founder) signed an exit agreement for the acquisition of the entire stake held by the vehicle HHC (where Three Hills’ interests sit) for a purchase price set to be paid on completion, with an additional amount of deferred consideration
  • A portion of proceeds will be rolled over allowing Three Hills to completely de-risk its position whilst maintaining upside. The transaction is expected to close by April/May 2024, subject to regulatory approvals

Byron (THCS I)

  • Byron is a premium burger chain operating in a niche segment of the UK casual dining market in which Three Hills invested in 2013
  • Byron has encountered a difficult trading environment over recent years, for reasons which were beyond the company’s control such as COVID-19, interest rate hikes, cost inflation, and now, a recession in the United Kingdom
  • Overall, given the confluence of factors impacting Byron’s trading performance, an exit was deemed as the best outcome for investors
  • In January 2024, Three Hills reached a preliminary agreement with Calveton, an existing investor in Byron, agreeing that Three Hills would sell its full equity stake and loan notes for a nominal value. The transaction was successfully completed in March 2024, resulting in a full exit