Corporate Carve-Outs – the route to unlocking value

Corporate carve-outs are inherently complex, requiring not just transactional capability but also deep operational expertise. Over the course of their 20-year history, Endless and its SME-focused Enact Fund have completed over 40 carve-outs including four acquisitions of this type in 2025 alone.

Chris Cormack, Managing Partner of Enact, outlines the key stages of how a hands-on, operationally focused approach which combines speed, certainty and hands-on value creation transformed Realise Training business.

Stage 1: Identifying Opportunity

The first stage of any successful carve-out is identifying businesses that no longer fit a parent company’s strategy but retain strong underlying potential.

In 2020, Enact supported a management buyout of Interserve Learning & Employment, a division of the Interserve Group. The business demonstrated many of the typical characteristics: a capable underlying business operating within a larger structure, lacking clear strategic direction and decisive leadership.

Stage 2: Acquisition: Delivering Speed and Certainty

Carve-out transactions are often time-critical and complex. 

The ability to move quickly, manage risk and provide certainty to sellers was essential. Enact provided a “good home” for the business and our ability to undertake in-house diligence and underwrite transactions in full on completion enabled us to transact at pace.

Stage 3: Creating a Standalone Platform

A critical early step in any carve-out is establishing a business that can operate independently.

Following acquisition, the business was rebranded as Realise Training Group, a key step which created a new identity focused on learner engagement and outcomes, transparency and educational quality.  

We worked closely with the management team to lay the foundations to scale – including leadership capability, operational infrastructure and a clear commercial proposition.  From Day One it wasn’t just about protecting value but creating foundations to build value and transition from a non-core division to standalone business.

Stage 4: Stabilisation and Early Transformation

The period immediately following separation is often the most critical.

For Realise, this involved stabilising the business through operational improvements. The focus was on encouraging decisive leadership, simplifying processes and reporting, reinforcing customer relationships, and ensuring continuity for learners and employers to ensure the business could operate as a standalone entity.

Stage 5: Driving Growth Through Strategic Focus

Once stabilised, the focus shifts to growth.

The core focus which underpinned our strategy soon became clear – educational quality, compliance and learner outcomes to ensure “right learner, right programme”.

Freed from broader corporate constraints, the business evolved into a focused provider of apprenticeships and adult skills training in regulated markets. This clarity enabled quicker decision-making, more flexible investment, and stronger alignment with market demand.

As a result, Realise grew learner numbers from approximately 7,000 to over 18,000 annually, demonstrating how independence and strategic focus can unlock significant commercial momentum.

Stage 6: Building Scale Through Acquisition

A key moment in many  carve-outs is the transition from standalone business to scalable platform.

Realise pursued a targeted buy-and-build strategy, completing three acquisitions: FW Solutions, Training Plus and Smart Gas Training and Assessment Centre. 

These transactions broadened capability and expanded reach across vocational and technical training markets – particularly strengthening the groups presence in specialist, regulated sectors.

Combining organic growth with selective acquisition enabled Realise to build a more diversified and resilient business.

Stage 7: Delivering Operational and Financial Transformation

At the heart of the model is a focus on operational improvement and sustainable financial performance.

During Enact’s ownership, Realise moved from a loss-making position to profitability, achieved compound annual growth of 22% and expanded to over 500 employees. 

This transformation was driven by disciplined cost management, targeted investment in capability, and a consistent focus on value creation.

Stage 8: Exit and Long-Term Positioning

The final stage is achieving an exit that reflects the value created while securing the business’s long-term future.

In October 2025, Realise was sold to AQA, the UK’s leading exam board and an independent education charity. The transaction provided a natural strategic home aligned with Realise’s mission to deliver vocational and technical training at scale, demonstrating how effective carve-outs can create stronger, more sustainable businesses.

A Blueprint for Value Creation

The Realise journey highlights the structured approach required to execute successful carve-outs: identifying opportunity, executing with speed, building standalone capability, stabilising operations, driving focused growth, scaling through acquisition, and delivering transformation and exit.

More broadly, it demonstrates how a partner-led, hands-on model can unlock value in businesses constrained by corporate ownership. By working closely with management teams and maintaining a clear focus on operational improvement, carve-outs can transform non-core divisions into leading, independent entities.

As carve-out activity continues to grow across the UK market, Realise provides a good example of how private equity can play a key role in creating stronger, more focused businesses that deliver long term value for employees, customers and stakeholders alike.