Chief executive Lee Compton to remain at business in same role

US private equity firm HIG Capital has taken a majority stake in M&E contractor Phoenix ME.

Building understands talks between the pair began towards the end of last year with the deal being concluded a few weeks ago which will see HIG, which started in Miami, taking a majority stake in the 95-year-old business.

Chief executive Lee Compton, who has been at the business for two decades and was its sole shareholder, is staying on albeit with a reduced stake.

Lee Compton CEO Phoenix ME

Lee Compton was previously the 100% shareholder of Phoenix ME

Compton joined as boss and led a buyout from its previous owners in 2009 with the firm now employing around 700 people

HIG manages around $75bn (£56bn) of assets globally and the Phoenix deal will see Jim Arnold, a former M Group Services boss, join the contractor as non-executive chair.

Phoenix is expected to post turnover of more than £400m this year when it files its next set of accounts for the year to September, with the figure for 2027 set to be in excess of £500m.

Around 75% of its business is in the UK but the firm has been growing its workloads across Europe, notably Norway, Austria and Finland where it has been targeting data centre work.

The firm, whose jobs include the Google HQ fit out scheme in King’s Cross, also has several data centre jobs in the UK with the sector one of its key areas – along with commercial and emerging tech and life sciences.

HIG’s investment is also likely to see Phoenix eye acquisitions of its own with Compton understood to be looking at growing annual revenues by £100m a year.

Compton said: “We are excited for the future and believe that by working closely with HIG., we can continue to deliver exceptional outcomes for our clients in our fast-growing end-markets.”

And John Harper, managing director of HIG. Capital, added: “Phoenix ME’s end markets will enjoy rapid growth over the coming years. We are excited to partner with the Phoenix ME team to build on their already impressive track record of delivering high-value engineering services on these complex assets.”

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