Xafinity provides pensions administration, payroll and consulting services for around 1,100 public sector entities and employs 1,400 people across the UK.

The Reading-based company generated revenue of £136 million in the year to March 2009, an increase of 84 per cent on its turnover in 2005, when it was acquired by Duke Street for £115 million. The firm has made 2.5 times its original investment.

Close Brothers acted as financial adviser to Advent in the deal, and Weil, Gotshal & Manges provided legal advice.