Private equity firm Piper has made a £16m investment in cafe-bar chain Loungers.
Loungers, which was founded in 2002 in Bristol by Alex Reilley (pictured), Jake Bishop and Dave Reid and now has over 20 Lounges from Plymouth to Birmingham, will use the investment to fund its plans to open 50 more outlets over the next three to five years.
It is the largest-ever investment the private equity firm has made. Piper has previously helped found the Pitcher & Piano chain, and has also made investments in restaurant chain Las Iguanas and bar chain Be At One.
Loungers co-founder Alex Reilley said: "We first met Piper four years ago and have been impressed with the team's continued support and interest in our business over the intervening period. We are all now focused on scaling the business and ensuring we build an outstanding operation and brand legend."
The Piper investment was led by George Adams and Peter Kemp-Welch. Kemp-Welch, who will join the board of Loungers, said: "Our research shows that there are hundreds more sites to go for and we believe the Lounges provide a completely new alternative for customers and have the potential to be the ‘pub of the future'."
Loungers was advised on the deal by Matt Eves of Equity Growth Partners.
By Neil Gerrard
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