Hong Kong's EmergeVest consolidates UK logistics assets
Hong Kong-based EmergeVest – a PE firm established by former executives from HSBC’s Asia principal investments division – has consolidated ownership of six UK logistics assets into a single platform with GBP850 million ($1 billion) in annual revenue.
The platform, EV Cargo, claims to be the largest privately-owned logistics business in the UK with interests spanning transport, logistics and freight-forwarding services, and logistics technology. It has 9 million square feet of warehousing space, 20,000 delivery vehicles, 5,000 staff, including 2,200 truck drivers, and 175 bases in the UK and 18 overseas. The company’s international operation handles 200,000 containers of sea freight annually and 6 million kilograms of air freight monthly.
The entities being consolidated are Adjuno, Allport Cargo Services, CM Downton, Jigsaw, NFT, and Palletforce. EmergeVest acquired them over a period of less than five years, with Downton the most recent acquisition. Part of the investment thesis was extending Downton’s services into Asia.
"EV Cargo will continue our existing strategy of delivering mission-critical supply chain services powered by people, technology, innovation, and sustainability. By working closer together and creating additional capabilities, we will provide new and existing customers with access to a wider range of leading-edge integrated solutions," Heath Zarin, founder of EmergeVest and CEO of EV Cargo, said in a statement.
EmergeVest has more than $450 million in committed capital, with Asian family offices prominent in its LP base. It is currently investing the EmergeVest Logistics Fund.
Following the spin-out from HSBC in 2013, EmergeVest raised capital for a specific set of deals it wanted to complete across two themes: Asia special situations and UK control deals. The former category included Taiwan-based denim and garment maker JD United Manufacturer, which EmergeVest backed in 2014, taking out a position held by HSBC. An exit came last year with a more than 2x return.
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