PRIVATE EQUITY | NAVIGATE
PRIVATE EQUITY | NAVIGATE
5
4
UK PRIVATE EQUITY UNIVERSE
For private companies seeking to grow their business, the quandary of choice can make the first step of identifying potential investors complex. It is essential that your advisers work closely with you to understand your aspirations and to help navigate you to the right investment house. In the following diagram, we illustrate the universe of available Private Equity investors in the UK.
International inbound
PRIVATE EQUITY INVESTOR TYPE
Venture capital
Development capital Family office
Sector specialists
Regional specialists “Mid market” specialists
Buy and build
Operational / transformational specialists Seeking to transform suboptimal or underperforming businesses, which will typically be acquired at lower valuations
INVESTOR DESCRIPTION
Seed or early stage, often seeks to sector specialise as investments are ordinarily pre- profitability, or even revenue
Later stage, growth investors. Includes regional governmental or pseudo-government agency investment
Investment office of one or more High Net Worth individual(s) and associated family. Focus is on diversification and
Focus on key growth sectors as core investment hypothesis
Regionally originated houses focused on specific geographies and regional industries
Active core of houses seeking transactions with a broad range of Enterprise Values in the UK
A subset of the mid-market, focusing on the acquisition of core “platform investments” upon which additional bolt-on acquisitions will follow
Overseas investors seeking acquisitions in UK
reinvestment of wealth into a range of asset classes, which frequently includes Private Equity-type investment Both active and passive investor via majority and minority stakes in multiple business that are typically held for a longer period than other institutional investors. Often focussed on investment in sectors and businesses familiar to the underlying family
INVESTMENT STYLE
Minority investor, backing a management team and the development of valued Intellectual Property
Minority investor with certain key minority control rights. Passive investment style
Use of activist sector experts to drive strategy
Local industrial knowledge and connections. Leverage local networks and relationships
Focus on deploying target levels of investment capital per deal in attractive businesses. Will require control.
Use of industry experts arbitraging combination synergies and knowledge of sectors
Use of operating partners to deliver transformational change, often including enhancement of management teams
Seeking complementary investments or geographic foothold in UK business environment
and target specific acquisition targets
Made with FlippingBook HTML5