The Schroder UK Public Private (SUPP) trust has invested £12m into a French company that refurbishes electronic devices.
In a stock exchange announcement, the trust said it had made the investment in Back Market as part of a $510m (£374m) funding round by led by its co-investment partner, Sprints Capital.
The investment was made via a single asset fund, Sprints Capital Ellison LP, and is SUPP’s fifth private equity investment since managers Tim Creed (pictured) and Ben Wicks were appointed as portfolio managers in December 2019, replacing Neil Woodford. Wicks has since been replaced by Roger Doig.
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Back Market, launched in 2014, sells high-quality professionally refurbished electronic devices and appliances to customers in 16 countries including the UK, US, Japan and across Europe. The company aims to make circular technology mainstream by delivering customers a better experience than buying new.
SUPP said the investment was in line with its focus on backing “innovative businesses with disruptive innovation, significant global growth potential, high quality management teams and supported by highly reputable co-investors”.
It alluded to a study by data analytics firm Kantar that found one in five shoppers have adopted more sustainable habits since the beginning of the pandemic. It added this was encouraging, because 90% of an electronic device’s carbon footprint comes from the manufacturing process.
Creed and Doig said: “In a rapidly evolving electronics market where sustainably conscious consumers are increasingly opting for recycled products as an alternative to new technology, Back Market is very well placed for continued strong growth.
“By prolonging the life of millions of consumer electronics devices, Back Market is also set to have a considerable impact on reducing the overall environmental impact of this important industry. We look forward to supporting the company on its journey over the coming years.”
In November, Creed and Doig took a £5m stake in market research platform Attest Technologies. The pair has also invested in private cybersecurity company Tessian and financial app Revolut last year.
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