Risk Capital Partners, the Luke Johnson-led investment vehicle, is in talks to acquire a stake in The Diner, the London-based American-style diner concept, M&C Report understands.
It is thought that the eight-strong The Diner, which is the sister business to The Barworks, is generating EBITDA of c£1.5m and that it is valued at around £12m.
The Diner was founded in 2005 by Marc Francis-Baum, Andreas Akerlund and Patric Franzen, with the aim of bringing “an authentic taste of New York to the UK”.
The trio set up their first Diner in Shoreditch, with the latest site opening in Kingston Road, Dalston.
It is thought that new investment will aid the expansion of the Diner both in the capital and into the regions.
Last year, Francis-Baum told M&C Report that the group aims to open “two to three” venues a year to both the Barworks and The Diner estates, which will mean a “couple more this year”.
It currently operates nine bars across London under its Barworks umbrella, plus a handful of cocktail bars under the 5CC brand.
It is looking to add accommodation and cocktail bars for future growth.
The news of Risk’s interest comes as Johnson told Financial News that the investment vehicle has abandoned plans to raise a new fund.
Johnson said: “We are not presently looking at raising another fund, as much as anything because of the distraction that entails. We’re a pretty lean team here and we just don’t have the resources to be investing as well as going out on a roadshow. In the past couple of years, proceeds from exits have been very good, so we are, so to speak, cashed up, and therefore certainly don’t need external money to continue investing.”
