Unquoted Equity

Our Unquoted Equity Investment Service differs from the traditional private equity model.  We do not fund acquisitions through debt and our portfolio is not primed for exit strategies.

The key to our philosophy is our focus on businesses valued at between £3m and £15m.  Ideally, these are profitable and growing companies which struggle to attract capital and because of their size, they tend to be overlooked by the larger private equity houses.  We are therefore targeting an area where there is less competition.

We believe there are significant opportunities for investors amongst the companies that match our investment profile.  Our ideal profile is:  

• UK domiciled companies
• Profitable, “stable” cash generative businesses
• Target range for investment is an enterprise value of £3m to £15m, where there are very few buyers and, therefore, prices are lower
• Long-term relationship with management teams who must remain involved in the medium to long term (five years plus)
• Encourage management teams to gently grow their businesses & provide development funds as required
• Redemption of the initial investment funds which leads ultimately to “exit” 
• NO FIXED TIME HORIZON

For the investors the profile should translate into:

• A robust and steadily growing dividend stream.
• Capital redemption and either return to investor or reinvestment in other companies to diversify the portfolio.
• Relief from UK inheritance tax on their investment after a qualifying period. It should be noted that we are not tax advisers and therefore the tax reliefs available to investors depends on their individual circumstances.

For any enquiries on our Unquoted Equity Investment Service, please contact David Horner.