Entrepreneurial private companies are the engine-room of the economy. The UK’s private equity industry is the largest and most dynamic in Europe, turning innovative ideas into successful businesses and helping mature companies become more productive which can help drive superior investor returns.
Maven’s experience and nationwide introducer base allows it to target later-stage, more established private companies where investor returns have traditionally been more predictable. These are typically ambitious and nimble businesses led by talented people, who can demonstrate a blend of vision and business flair, alongside a differentiated and competitive business proposition.
We choose to work only with companies which offer the potential to generate positive shareholder returns at exit, and where we are able to create significant additional equity value, typically targeting a Multiple of Money (MoM) return of not less than 2.5x initial investment over a holding period of up to 5 years. These will be businesses operating in the sectors we understand and where we have a proven track record of delivering results for all stakeholders.
Investor Partners are able to construct a balanced, diversified portfolio of private company holdings, offering the potential for regular income and capital gains whilst mitigating the risk associated with private equity investment.
Risk Warning
Private equity investments may be difficult to realise and carry a higher degree of risk than many other forms of investment. These investments are intended for Professional Clients only. Such investments are only suitable for investors who are able to evaluate and understand the risks and merits of such investment and have the resources to bear any loss that may result from such investments.
Opportunity
For professional investors who are seeking:
Private over public
Widely available financial information means that the share price of a public company adjusts immediately to every missed estimate or piece of good news. As a result it is hard to discover a quoted company which has hidden intrinsic value to unlock. However, there are often opportunities to invest in private companies which are significantly undervalued and can provide investors with the potential for better, risk adjusted returns.
Active involvement
Private equity managers take a much more active role in the companies they invest in, often taking a seat on the board of each portfolio company. Maven normally appoints at least two directors to the board of a company in which it invests, including the Chairman.
Alignment of interests
Private equity managers are able to align their interests with those of their investors, by ensuring that the key investment executives share in any profit realised at exit. The intention is that each executive is motivated to commit significant time and energy in achieving the best possible outcome for investors.
Although we appraise hundreds of potential deals each year, we invest in only a small number which satisfy our strict criteria and where the transaction offers the target return profile for our investor base. Every prospective investee company is subject to a rigorous process of due diligence, both by Maven’s investment team and third-party, expert advisers.
Maven’s regionally based investment and portfolio executives are well placed to support investee companies across the UK, and work closely with each management team from the outset to support business growth. We have a proven record of adding value to private businesses in order to drive growth across the portfolio, where our approach is to understand both the numbers and the future trading prospects for portfolio companies.
A Maven executive is also invariably appointed to the board, with a key objective of playing an active role post-investment in the strategic direction of the business. That includes helping the management team to define and evolve its business plan, appointing new senior executives where appropriate, and facilitating new, mutually beneficial business introductions with other investee companies.
Our executives also work with each management team from the outset to develop an exit strategy. This will involve identifying prospective ultimate buyers for the business, even where a formal sale process is some years away.