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European acquisition group Oakley Capital has acquired a majority stake in strategic advisory firm G3, with an ongoing sign of investors’ interest in London’s thriving corporate intelligence industry.
Founded in 2004, G3 is one of the UK capital companies and relies on a network of global sources to provide corporate clients around the world with intelligence on political and business issues.
The deal values companies over £250 million based on a “teenage luxury” multiple of £17 million in the future, according to those familiar with the issue. Oakley declined to comment.
The G3 has grown rapidly in recent years, especially from private equity companies seeking advance due diligence, driven by global instability and a surge in demand for its modest services.
“Geopolitical volatility, regulatory changes and supply chain ruptures are all driving demand,” Executive Chair Michael Bevan told the Financial Times.
The Private Equity Investment Committee no longer relies on “a basic red flag report on risky transactions,” he added. “They are requesting much deeper due diligence products to leverage insights from their global networks, allowing them to make risk decisions.”
Bevan, former managing director of HSBC, acquired the company in 2018 along with fellow executive chair Nick Alcock. Both Bevan and Alcock, former British diplomats in the Middle East, will continue to be invested in the company and will continue to manage their business.
The private holding group earned pre-tax profits at £21.1 million in 2023, earnings of £21.1 million, according to its account.
Small London corporate intelligence companies have also attracted international buyers in recent years. US-based consulting firm JS purchased the London GPW Group in 2022, and African expert Africa purchased the following year.
Hakluyt, the G3’s highest-capacity rival, said he will remain independent of FT this year. Founded by a former MI6 officer, it earned pre-tax profit of £28 million in revenues of £131 million in the year ended June 2024.
The G3 also has a link to intelligence services. John Sawers, former Mi6 head, sits on the advisory board alongside David Cohen, the former assistant director of the CIA.
But like everyone else in the sector, the company has been developing its business beyond corporate intelligence gathering in recent years, and has been trying to become a trusted advisor on a variety of geopolitics, business and cybersecurity issues.
Its website says it has about 100 staff in offices in London, Singapore, New York and Japan, and has run more than 1,000 projects in 65 countries last year.
