Private Equity investment

Private equity is now widely recognised as an established asset class with a long history of generating positive returns for UK investors. It can be an attractive option for investors and advisers either for the potential returns or its merits as part of a portfolio diversification strategy.

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 increased investor returns.

Whilst traditional Venture Capital will often focus on start-up or early stage businesses, 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 and hard working people, who can demonstrate a blend of vision and business flair, alongside a differentiated and competitive business proposition.

In all cases, the management team of a private equity backed business will be highly incentivised through their personal equity stake, meaning there is direct alignment of interests with the underlying investors. This is a key reason why the UK private equity industry has delivered superior investor returns over many years.

Maven’s long term track record in private equity is based on a tried and tested approach of investing in only a select number of companies every year. In each case we look for a business led by good people, with an achievable growth plan, investing where we can see the potential to make an earnings-based ‘arbitrage gain’ at exit.

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 between three and five years, from a combination of income and capital proceeds at exit. Investments will generally be in businesses operating in the sectors we understand and where we have a proven track record of delivering results for Maven investors.

Maven uses its embedded presence in the key UK corporate finance regions to access a range of investment opportunities in private companies with significant potential for growth. These are often introduced on an off-market basis, on the strength of longstanding personal relationships, or by professional advisers who are aware of our expertise and ability to work constructively with an entrepreneurial management team to accelerate business growth.

A prospective new transaction is subject to rigorous analysis within Maven, including a detailed review by members of our partner group and senior investment executive. That process is intended to challenge and prove the investment thesis, and to structure the transaction in such a way to achieve the best possible returns.

If the decision is taken to conditionally proceed, the target business is subject to extensive third-party due diligence, covering all key aspects of the investment, including financial, legal and management referencing, as well as full market and commercial analysis. At this time Maven also seeks to identify prospective future acquirers for the business or asset, based on comparable M&A activity in the sector.

A detailed investment proposal is issued to Investor Partners only when the initial review process is complete, including an estimate of the likely projected returns. There is then a defined period to consider each proposal before deciding whether or not to participate.

Whilst Investor Partners will usually make an investment decision based on the proposal document, Maven investment executives are on hand to provide further information and discuss the merits of the investment case on a one to one basis if required.

• Investing at the right price
  We invest only where a competitive entry price is available and where we see the future potential to exit at an enhanced multiple of higher earnings. Maven also seeks to identify potential future buyers of each target business prior to completing the initial investment.
• Adding value
  During a typical holding period of three to five years for each investment, Maven’s executives work closely with the management team to add shareholder value. The focus is on working together to drive business improvements which will positively impact profitability and ultimately make the business more valuable and attractive to potential acquirers.
• Developing an exit strategy
  From the outset of each investment, we harness our extensive knowledge across multiple sectors and the advisory community to help management develop an agreed exit strategy. We have long standing relationships with larger private equity firms, which are often looking for the ‘rising stars’ in the lower mid-market and will often pay more than comparable trade acquirers if they can use the business as a platform for further growth or an acquisition led buy and build strategy.
• Optimising value
  When the decision is made to sell a business, Maven can assist each management team in selecting the right adviser, often a sector specialist, whose expertise and insight can help to optimise the exit value achieved by targeting the correct buyer pool.

Maven provides investors with cash distributions on the loan stock element of each investment on a six monthly basis where contractually due. Performance update reports on portfolio holdings are also provided to Investor Partners at that time. When an investment is sold, Maven distributes cash proceeds to investors.

Maven also has a dedicated and secure portal enabling Investor Partners to keep track of their portfolio at any time.

There are no costs to becoming a Maven Investor Partner. Fees are only payable on the sum invested. Due to FCA regulations, we will need to verify that you are classed as a high net worth, experienced investor before we can share details of any private equity or property opportunities.