Vitruvian Partners has invested an undisclosed sum into Sykes to fund the company’s plans for international and UK expansion.
The total is enough to replace Livingbridge as the majority stakeholder, which invested in Sykes in 2015.
This year Sykes manages more than 17,500 properties and has acquired 12 businesses, including the 2,000-strong New Zealand rental property firm Bachcare.
The new investment will go towards technology and people, Sykes said. It has plans to send 3.5 million people on holiday each year by 2023 and grow its workforce to more than 1,000 people.
“We’re excited about this next phase in the Sykes story,” Graham Donoghue, chief executive of Sykes Holiday Cottages, said. “We’ve transformed the business within the last five years with the unwavering support from the Livingbridge team, and we are now in a strong position to scale further in what is a booming staycation market.”
Sykes had 1.6 million customers in 2019 and saw profits rise to more than £20 million by the end of September, from £12.6 million in 2018.
Ben Johnson, partner at Vitruvian Partners, said: “In Sykes we have found a team with a mission to become a global category leader and we hope to support that with our experience and capital.”
“Sykes Holiday Cottages is a fantastic business, and we are delighted to have supported its development and growth,” Livingbridge partner Adam Holloway added.
