August Equity has invested in Fosters Funeral Directors, a disruptive funeral services provider based in Glasgow. Fosters operates three branches across Glasgow and Ayrshire and delivers roughly 1,400 funerals per year.
The funeral director model has seen little historic innovation, while the average pricing for funerals across the UK is £5,530 for cremation-based funerals and £6,800 for burials [1]. Funeral inflation has averaged nearly 6% over the past three decades, however 2016 was the first time in 10 years that there has been a reduction (0.7%) in funeral costs [2]. There’s clear latent demand for a more affordable funeral solution.
Fosters’ sites are market leading in terms of premium and comprehensive service provision. Locations are modern, visually attractive and rigorously standardised. August will work closely with management to grow the business through new site openings, acquisitions and the introduction of pre-need funeral plans.
Our investment backs a seasoned CEO, Ronnie Wayte, to continue the firm’s strong at-need growth across Scotland and the UK, and leverage his wealth of experience in pre-need funeral plans.
The investment was led by David Lonsdale and Christian Dubé, with support from James Bakewell, Richard Muckle and Sam Hardy. David Lonsdale, Christian Dubé and Richard Muckle will join the board.