CMS in London has successfully advised private equity investor Risk Capital Partners (“Risk Capital”) on its two most recent majority stake acquisitions. Risk Capital has acquired controlling stakes in Red World Buffet, a leading buffet restaurant group, and Cruise.co Holdings, the owner of the UK’s largest online cruise holiday websites Cruise.co.uk and Cruises.co.uk, providing both companies with development capital to expand their existing offerings.

Risk Capital was founded in 2001 by Luke Johnson and Ben Redmond, and remains an independent firm owned by its partners. It has invested heavily in the restaurant sector in recent years, where it has previously backed chains such as Strada and Giraffe; however its acquisition of Cruise.co marks its first investment in the travel sector.

Red Hot World Buffet, which was founded in 2004, now has seven large restaurants across the UK, employing 600 people with a turnover of £22m. The investment will provide development capital for the restaurant group’s expansion, with its eighth store due to open in Leicester in 2014. Meanwhile, Cruise.co will use the additional capital to support its growth ambitions both in the UK and internationally, as well as to strengthen its online expertise.

The CMS team was led by partner and head of private equity James Grimwood, with assistance from partner Alex Patience (banking) and associates Gemma Sainsbury and Stephen Kilshaw (corporate).

James Grimwood commented: “We are pleased to be involved in these significant transactions which strengthen our relationship with Risk Capital, and further reinforce our position as a leading global adviser to the private equity market.”