MML Infrastructure Private Equity invests in Premier Modular

We are delighted to invest in Premier Modular, a leading provider of leasing and permanent modular solutions in the UK and Europe. Premier primarily serves the medium to long term needs for essential infrastructure, including education, healthcare and public infrastructure, as well as various commercial applications. The business combines its experience of delivering highly bespoke, permanent buildings with its large, premium modular fleet to offer flexible solutions that meet the needs of end users, such as students, teachers, patients, medical staff and other workers, in an effective manner.

Modular space is a critical enabler of the delivery of flexible infrastructure, a key addition to the existing fabric of large-scale infrastructure and core component of a more sustainable solution for 21st century needs. Health, education and energy requirements are more variable and often inefficiently served with conventional bricks-and-mortar infrastructure. By contrast, modular buildings serve societal needs when and where they exist in a more cost effective, green and measured way, with waste-to-landfill being reduced to zero.

In Premier, we see an exciting business that is disrupting the traditional approach to meet essential infrastructure needs with more flexible, responsible and ESG friendly solutions. The business enjoys a leadership position in the UK and a growing presence in mainland Europe, and has reported significant growth in recent years, with few companies able to compare with its ability to operate at scale and pace with modern methods of construction. We are delighted to be investing alongside David and the Premier team, to support the business to continue to make world-class facilities available in the UK and beyond.

Our investment in Premier Modular represents MML’s second Value-Added Infrastructure strategy investment. The strategy combines the extensive private equity value creation and sourcing expertise of MML’s established platform with the deep sectoral knowledge and experience of its dedicated infrastructure team, led by Andrew Honan. The approach focuses on distributed infrastructure platforms with pools of smaller individual assets with infrastructure characteristics and a unique ability to deploy new assets at attractive returns.

Andrew Honan, Managing Partner (Infrastructure) at MML, explained further:

“Whichever way you look at Premier Modular – its great team, technical prowess, recurring income stream, healthy margins, prestigious case studies and awards – you can see it’s already a well-run company. But it’s the potential for Premier Modular’s long-term growth that we are really excited about. Fundamentally, we are seeing a big societal change in how we build our infrastructure in the UK and globally – a focus on being closer to the user and dealing with shorter term changes in societal needs. In that context, mega-projects and permanent infrastructure are only a portion of what is needed, and Premier is at the vanguard of enabling this change in a sustainable and affordable way.”

MML has committed alongside re-investment from Cabot Square Capital to support management deliver the next phase of growth.

David Harris, CEO of Premier Modular, added:

“We are very excited to welcome Andrew, Harri and Manu and already appreciate their partnership style and supportive approach. MML’s investment means we can continue our enviable track record of growth, by investing in the growth of our second-to-none fleet, expanding the range of ownership structures we offer our clients, and meeting our clients’ requests to expand into Europe. The combination of financial firepower and infrastructure expertise will be invaluable as we continue to drive Premier forward. The entire team now look forward to working with our new partners and we believe this transaction will benefit all our stakeholders, including our customers and employees.”

Keith Maddin, Partner at Cabot Square Capital, commented:

“Premier is a very successful business and has built a first-class track record of providing sustainable infrastructure solutions. Premier is well placed to capitalise on this momentum further and we look forward to continuing to be involved in the next stage of their growth alongside management and MML Capital.”

The MML deal team comprised Andrew Honan (Managing Partner (Infrastructure) and Chair of Sustainable Investing), Harrison Smith (Investment Manager) and Emanuele Rustichelli (Investment Associate).

MML was advised by Stephens (Corporate Finance), Pinsent & Masons (Legals), KPMG (Financial and Tax DD), CIL (CDD), Marsh (Insurance DD) and Sustainable Advantage (ESG review and planning).

Premier Modular and Cabot Square were advised by Macquarie Capital and Herbert Smith Freehills.

MML investor portal logins

For investors in MML Fund VI, MML Ireland I & MML Ireland II

For investors in MML Fund VII