Enterprise Ventures, a wholly owned subsidiary of Mercia Technologies PLC, and one of the leading providers of venture and growth capital to ambitious SMEs in the UK regions has reported three exits from its managed Growth Funds in the last three months with an aggregate return of 4.6 times the initial investments.
The three successful exits are:
- Barnsley-based Barber DTS is Europe’s leading supplier of body art products,
- Westhoughton-based coachbuilder Woodall Nicholson (partial exit only); and
- Speke-based transfer valve manufacturer ChargePoint Technology.
The Growth Funds invest between £500k and more than £2million in the form of equity funding to established, profitable businesses, backing proven management teams keen to grow and add value.
Jonathan Diggines, Enterprise Ventures Executive Director, Funds said:
“The EV Growth Funds have performed particularly well. We raised these funds when many other fund managers seemed unwilling to support SMEs and we still believe that this is the case. 90% of private equity funds are directed to businesses that are above the SME threshold, which means that they are only addressing 10% of the UK businesses population. Enterprise Ventures, working in the UK’s capital-underserved regions, sees great opportunities, investing in innovative SMEs and delivering strong returns for investors.”
The three exits achieved in the past three months followed the 2015 EV Growth Funds exit, when Enterprise Ventures sold IMC Worldwide, generating a 45% plus IRR and a multiple of 4.2 times investment.
Wayne Thomas, Enterprise Ventures’ Investment Director said:
“With three great exits in the past three months, it means that more than 90% of the capital has now been returned to the Investors of the EV Growth Funds. The remaining portfolio of ten companies continues to mature and flourish, with a number of investees growing as planned and reporting increased profitability, and undoubtedly there will be more successful investment returns to report.”
Tim Hames, Director General of the BVCA added:
“The EV in Enterprise Ventures continues to stand as much for Exit Vindicated as Enterprise Ventures. This is the latest in a long line of striking success stories for an investment team which has proved consistently ambitious, consistently bold and consistently effective in creating value.”