For Family Offices and Select Private Investors
If our unquoted investment services were compared to a Savile Row tailor, our Bespoke Unquoted Investment Solutions would be our tailor-made offering, dedicated to family offices and other select investors who demand only the very best.
With extensive experience of building private equity portfolios carefully crafted to meet our clients’ needs, we offer individuals an exclusive route to investing directly into robust, private UK SMEs valued at between £3m and £15m.
As you would expect from a tailor-made service, our solutions are developed from the ground up to match our client’s investment ambitions precisely. So, unlike our Investor Club, where members join an investment syndicate, these investments are funded solely by the individual.
This customised and discrete investment approach allows us to pre-select suitable investment opportunities to build an entirely new private equity portfolio, or develop an existing one, with ease. Our bespoke service differs from the traditional private equity model and our Investor Club because we do not tend to work with clients to build portfolio's solely primed for exit strategies.
Our unquoted investment approach is underpinned by our belief in commercially compelling UK companies, steered by strong, steady and ambitious management teams. This approach has been honed through developing bespoke private equity investment solutions for a number of large investment vehicles since 1998. These include family offices and Chelverton Equity Partners (CEPS) PLC, an AIM traded industrial holding company and our sister company.
Mind the gap – Our transaction range
The times we live in have created a funding gap for British SME businesses. It is true, banks are starting to lend again, but there is still a long way to go before they are once again supporting the kinds of fantastic British businesses they could and indeed should. However, what the banks are missing out on is an investor’s gain. Companies looking to raise capital of between £3m and £15m are experiencing restricted bank finance and, at the same time, find their funding requirements too great for the majority of individuals, yet too small for most private equity providers, such as Venture Capital Trusts.
There is a plethora of quality UK businesses, doing proper things, managed by sensible people looking for funding in this range and, as such, we believe there is excellent investor value to be sought here.
We work with our bespoke clients to build portfolios of companies which are:
- UK domiciled.
- Profitable, “stable” and cash generative businesses.
- Looking to raise between £3m and £15m, where there are very few buyers and, therefore, prices are lower.
- Managed by ambitious management teams, with whom we/our clients can build long-term relationships and who must remain involved in the business in the medium to long term (five years plus).
- Structured so management teams are encouraged to gently grow their businesses and where our clients will seek to provide development funds as required.
- Seeking an investment for no fixed time horizon and provide robust scope for redemption of the initial investment funds which leads ultimately to “exit.”
For our clients this 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.
Our Investment Approach
Our approach is meticulous yet simple: whilst we look at a range of investment opportunities, we will only present our clients with a fully appraised and edited selection of what we believe to be the best investment opportunities on the market according to their needs. Only opportunities which present a solid business model, in sectors we truly believe in, make the cut.
Our experienced Unquoted Equity team leads the entire investment process, from researching and vetting every opportunity, to structuring and managing the investment. Then, when necessary, we can coordinate any eventual exit of investors. The decision to invest in any company we present is entirely at each client’s discretion, based on what they believe best suits the portfolio of their investment vehicle.
We understand that no one of our clients are the same. Our team take the time to get to know our clients and their specific investment needs. Every investment opportunity we present clients with is procured exactly to their individual requirements and is sourced through our extensive network of brokers and industry contacts. All of our investments are structured as tax efficiently as possible and make use of tax-efficient schemes where appropriate. Mechanisms for tax efficiency include the Enterprise Investment Scheme (EIS) and Business Property Relief.