Some of the world’s biggest private equity investors are showing interest in a £400m British fleet management platform despite the broader investor caution which has engulfed the global software sector.
MEZIESBLOG understands that Carlyle is among the financial sponsors expected to table offers this week for Nexus Rental, which is owned by the mid-market buyout firm Equistone.
Sources said that other suitors included Providence Equity Partners, while Blackstone had expressed an interest in Nexus but had decided against bidding.
One industry source said the level of enthusiasm for Nexus Rental was “healthy”, particularly in the wake of the sell-off in software stocks in recent months amid concerns about the impact of AI’s explosive adoption on the industry.
Nexus is said to be insulated from these risks because of the heavy investment it has itself made in AI, with its earnings growth expected to continue to be strong.
Carlyle’s prospective bid is understood to be being lodged by one of the firm’s dedicated technology investment vehicles.
Equistone acquired control of the company from Phoenix Equity Partners in 2023.
Nexus Rental’s proprietary software platform, known as Iris, was involved in more 217,000 vehicles being leased last year.
The company’s corporate customers include Balfour Beatty, National Grid, Persimmon and South West Water, according to its website.
Carlyle, Blackstone and Equistone declined to comment, while Providence could not be reached for comment.
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