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H1 Newsletter - July 2025

School’s out for summer. At Souter Investments, the team has been embracing that end-of-term feeling by reflecting on the year so far and celebrating four new deals as we continue to invest through the cycle.

Here’s what we’ve been up to so far in 2025…

Z is for Zelus

In January, we backed Sullivan Street Partners’ investment in Zelus Sport, the exclusive Nike authorised global licensee for team sports.

Operating from locations in the UK and the Netherlands, Zelus specialises in the design, development, manufacturing and e-commerce fulfilment of customised sports apparel and equipment for professional and grassroots teams around the world.

One of several active co-investments with our partners at Sullivan Street, this deal will support Zelus’ ambitious growth plans, equipping more teams and athletes with their top-quality products, from local pitches to professional stadiums.

Providing kit to teams as varied as Premier League football clubs, international rugby union champions and leaders in the cricket league, we look forward to seeing the famous Nike swoosh on many more team kits in the coming years.

 

TMS’s marine expertise, multiplied

April brought about our sixth deal with Sullivan Street, the acquisition of Devon-based TMS Ltd, a leading marine civil engineer and contractor. The deal continues what has become a theme of backing value-added infrastructure services businesses.

TMS is a specialist in marine and civil construction, planned and emergency repair projects, harbours and marinas, flood defences, breakwaters and sea walls, and inland waterways.

The deal brought TMS together with two other marine infrastructure companies, Hesselberg-Hydro and Marine Plant Hire UK, to allow for the expansion of all three entities’ services across the UK as we come to terms with the importance of upgrading aging infrastructure and the impacts of changing weather patterns and climate change more broadly.

The investment in TMS adds to portfolio companies such as Amey, Octavius and Suir Engineering, all of which provide vital construction and engineering services that improve the public realm, maintain and upgrade critical infrastructure, and enable the AI and big data tech revolution, energy transition projects, and our response to the climate emergency.

 

 

The start of a new ERA

A global leader in cost optimisation, insights and supply chain consulting, ERA Group has come a long way since it was founded in 1992 by Fred Marfleet.

The business delivers high-quality cost reduction insights and programmes to SME customers across the globe, through more than 1,000 consultants and 750+ franchise partners across more than 60 countries.

In May, we were pleased to participate in Horizon Capital’s £70m investment in ERA. The funding will facilitate the next phase of ERA’s growth under the leadership of Chief Executive Mark Taylor.

Our third deal with Horizon, a leading investor in high-growth technology and business services companies, we have also invested alongside them in Sapphire Systems and Agilico. Horizon has acquired a majority stake in ERA Group and will support the company’s continued expansion, both organically and through strategic acquisitions.

 

Averna takes flight with MEL Aviation Components

May was a busy month as we also completed a third deal with Averna Capital, backing them on their majority investment in MEL Aviation Components (“MAC”).

Since founding MAC in 2013, CEO Nick Harvey has built a market-leading specialist in the supply, exchange and management of “rotable” aircraft components that require regular replacement and rotation, such as escape slides, pressure regulators, and control units.

The business also operates a 24/7 Aircraft-on-Ground support desk, enabling rapid response to urgent maintenance needs and helping more than 100 airlines and partners across 30 countries return grounded aircraft to service as quickly as possible.

Building on existing revenues of £34m alongside expanded facilities with HSBC, the funding will enable MAC to continue investing in its inventory position and build out its specialist team. Joining Nick and Chief Commercial Officer Matt Levick is Chief Financial Officer Andrew Humphreys.