Post on 27-Jun-2020
August 2019 Maven Capital Partners (Maven) has developed Maven Investor Partners
(Investor Partners), a network of over 250 professional client investors
who can access a range of carefully researched private equity transactions
and property transactions directly. Maven Investor Partners has the
objective of generating superior investment returns and offers clients the
ability to build a diverse portfolio by investing on a deal by deal basis.
Maven is introduced to around 400 transactions each year, sourced by a
UK wide investment team, from which Investor Partners are typically
offered an allocation in six to eight transactions. Over £194m has been
committed by Investor Partners since 2007, attracted to the strong income
characteristics and capital gain potential on offer. This report reviews the
investment opportunity, strategy and processes which have been offered
to Investor Partners for over a decade.
Private equity investment track record Number of
investments IRR (%) Multiple of
cost (x)
Since inception to December 2018 Realised* 22 29.5 2.9
Since inception to December 2018 Unrealised* 34 5.8 1.2
Source: Maven Capital Partners. Note: *Representative of Maven’s private equity investments initiated between May 2006 and December 2018.
Maven Capital Partners (Maven)
Maven’s private equity approach on behalf of Investor Partners is to invest only in
well established companies with proven management teams, where its clients can
acquire a significant equity interest at a competitive entry price. Similarly, property
transactions must clearly demonstrate the potential for attractive risk adjusted
investor returns, through secured income and development gains. Maven
executives maintain a close board level involvement with investee companies and
property partnerships post investment, with the ultimate aim of achieving a
successful exit and positive return for all shareholders.
Direct private equity and property investment is regarded as higher risk, so these
investment opportunities are only available to professional clients and eligible
counterparties as defined by FCA rules (see footnote on page 10). Investors
confirmed by Maven as meeting those criteria can access Investor Partner
transactions directly.
Conclusion: Historic track record shows strong returns have been achieved
Maven has the experience and capability to make available a wide range of
professionally appraised opportunities in the alternative asset space. Investor
Partners are able to participate selectively to build a broad based portfolio in private
equity and/or property. Maven has achieved an overall multiple of cost of 2.9x on
realised investments over the period of analysis, suggesting that the co-investment
opportunity with Maven offers the potential for eligible investors to generate strong
returns. Maven’s track record of sourcing and making a range of new property
investments across the UK, allied with six successful exits (four for Investor
Partners, two for third parties), suggests that eligible investors should also consider
these transactions given the underlying asset backing and development gain
potential.
Maven Capital Partners Co-investment opportunity
Appraisal of investment performance
Assets under £634.8m
management (AUM)*
AUM by fund type*
Venture Capital Trusts £179.9m
Investor Partners £133.2m
Maven UK Regional Buyout £94.1m
Midlands Engine Inv Fund £90.9m
Northern Powerhouse Inv Fund £58.1m
North East Development Capital Fund £27.3m
Scottish Loan Fund £27.3m
Greater Manchester Loan Fund £14m
Finance Durham £10m
*Source: Maven (as at 31 December 2018)
Maven contact details
Kintyre House, 205 West George Street, Glasgow
G2 2LW, United Kingdom
Fifth Floor, 1–2 Royal Exchange Buildings, London
EC3N 3LF, United Kingdom
Phone: +44 (0) 141 206 0114
Initial contact: Suzanne Lupton
Website: www.mavencp.com
Business description
Maven Capital Partners is one of the UK’s leading
private equity and alternative asset managers,
providing growth capital to SMEs and funding for
actively managed property development projects,
as well as offering tax efficient and income focused
investment opportunities for investors.
Note: Maven refers generically in this report to the
investment business and team in place since 2004,
initially as the private equity division of Aberdeen
Asset Management PLC from 2004 to 2009 and
subsequently as Maven Capital Partners following
a management buy out of that business in 2009.
Analysts
Adrian Mill +44 (0)20 3077 5700
Neil Shah +44 (0)20 3077 5715
financials@edisongroup.com
Warning: Past performance is not
a guide to future performance.
Maven Capital Partners is a
research client of Edison Group
(‘Edison Investment Research
Limited’). Edison does not issue
recommendations or target prices.
Financial services
Maven Capital Partners | 19 August 2019 2
Overview of co-investment opportunity
Maven has developed Investor Partners, a network of more than 250 professional client investors
and eligible counterparties, including family offices, HNW individuals and wealth managers, who
can access a range of private equity and property transactions directly, sourced through the Maven
corporate advisory network across the UK, making financial commitments at a level of their
choosing. Investor Partners are typically introduced to between six and eight fully vetted and
professionally appraised transactions each year, with the opportunity to invest on an individual
transaction basis (deal by deal), for a commitment of £25,000 or more per transaction.
Maven has a nationwide team of 55 investment and portfolio executives, backed up by 38 support
professionals, in 12 key regional centres, including the senior personnel listed on pages 8 to 10.
This team is introduced to around 400 private equity and property transactions per annum through
corporate finance advisers across the country, and can demonstrate proven investment capability
and expertise in a range of sectors.
Alongside its established private equity business, since early 2013, Maven has also built a
specialist property business, investing in hotel, student accommodation, land and planning and
office refurbishment projects, as well as commercial and residential portfolios. Maven now manages
over £300m of property assets across the UK for client funds, of which £140m is for Investor
Partners, where many opportunities are sourced off market.
For investors and advisers considering direct investment in private equity and property, whether
primarily for the potential returns or their merits as part of a portfolio allocation, investing with a
proven investment manager such as Maven could be an attractive opportunity. With many of
Maven’s investments, there is a significant allocation available for an Investor Partner pool to
participate, occasionally alongside other Maven institutional client funds. It should be noted that
direct investments made through the Investor Partner model do not attract Enterprise Investment
Scheme (EIS) or Venture Capital Trust (VCT) tax benefits.
Private equity
The Maven team is one of the UK’s most active and experienced SME investors, with some of the
senior fund management team having been involved in private company investment since the early
1990s. Maven’s team believes that there are few if any other fund managers in the alternative asset
space that are able to make available to investors the wide and varied range of transactions
needed to build a broad based portfolio. Maven’s nationwide team offers multi sector investment
expertise and UK wide coverage of the corporate finance market, with investment executives
operating from 12 regional offices namely Glasgow, Edinburgh, Aberdeen, London, Manchester,
Birmingham, Nottingham, Newcastle-upon-Tyne, Durham, Bristol, Reading and Preston.
Investor Partners have the opportunity to invest in later stage private companies, normally with an
enterprise value (EV – equity value of entity at time of investment plus debt less cash) of up to
£25m pre investment. New VCT investment rules, introduced by the UK government in 2015 to
ensure that the UK is aligned with EU State Aid rules, have limited the types of transaction and age
of companies available to VCTs, which have traditionally been one of the key sources of finance to
SMEs. As a result, managers such as Maven, with access to high quality deal flow, now have the
opportunity to make larger allocations available to co-investors, which were previously available to
VCT clients.
Maven’s Investor Partners have invested circa £45m between January 2016 and December 2018 in
supporting a number of Maven led transactions.
Maven Capital Partners | 19 August 2019 3
The two most recent transactions, where Investor Partners were offered the opportunity to
investing alongside the Mavens UK Regional buyout fund were:
◼ Acton Banks - the £9.67m MBO of a market leading healthcare staffing provider to the NHS
and private sector across the Midlands and Northwest.
◼ UAP - the £8.66m MBO of a highly profitable and fast growing door and window hardware
business.
Additional investments include:
◼ Orchidsoft – a development capital investment into Orichsoft, which has been developing and
selling intranet solutions for over 20 years in the UK
◼ Altra Consultants – an equity investment into a newly formed and fully accredited insurance
broking firm.
◼ Hedgehog Lab - a funding package to support the growth of an award winning mobile app
developer, specialising in digital applications for smartphones, tablets, desktops and wearables.
◼ Westfield Medical – where a follow on funding package increased the Maven share in the MBO
of Westfield Medical, which is a provider of sterilisation barrier products to the healthcare and
industrial sectors.
◼ Prospectsoft - the MBO of Prospectsoft, which provides customer relations management and e-
commerce software for the business to business market.
◼ Healthpoint - a funding package into Healthpoint, which sources and supplies affordable
branded healthcare, beauty and pharmaceutical products into the multiple retail sector,
predominantly in the UK.
Investment in professionally appraised private companies, often with strong yield characteristics,
can be attractive to investors as a means of mitigating the effect of over-exposure to the traditional
main asset classes. Historically, private equity has been largely uncorrelated with prevailing main
market volatility, and can be an important component of a diversified and successful investment
portfolio.
Maven employs a highly selective investment appraisal process, where every prospective
investment is subject to thorough due diligence, overseen by the Maven Investment Committee and
making extensive use of expert third party experts who provide supporting commentary on the
commercial opportunity. This diligence covers all relevant aspects of the company, its team, trading
history and business model, before a decision is taken on whether an opportunity will be
progressed and made available to Investor Partners. Where a transaction is successfully
completed, Maven executives maintain a close board level involvement with each investee
company throughout the period of investment, working supportively and collaboratively with
management teams to add value and ultimately achieve a successful exit for all stakeholders
Property
Since early 2013 Maven has established a specialist property investment business to take
advantage of strong proprietary deal flow where Maven is regularly introduced to attractive
investment and development opportunities across the UK, offering potential investment returns
which often suit the risk profile of Maven investors. A team of eight executives based in Glasgow
and London has been recruited with a range of property investment and property finance
backgrounds and has a broad based collective expertise in development, asset management and
financial structuring in a number of sub sectors of the UK property market. Due to its national office
presence Maven is able to maintain a high profile in the regional markets, where its executives
have established a network of local relationships with property agents, developers, professional
advisers and financiers, enabling Maven to gain early access to new opportunities, in many cases
off market or through word of mouth introductions. These property transactions generally have a
Maven Capital Partners | 19 August 2019 4
development gain element and are available to Investor Partners who are looking for direct access
to this asset class which may be viewed as lower risk given the underlying asset backing.
Since 2013 Maven has completed 27 investments in hotel, land and planning, student
accommodation, residential and office projects, 18 of which were accessible to Maven Investor
Partners. The remaining nine investments were on behalf of third party clients, where Maven acts
as asset manager and manages the development of these properties through to sale.
Maven applies the same strict disciplines to its property investment activities as it has been
applying successfully to private equity transactions since 2004, from the sourcing of transactions,
through due diligence, deal structuring and Investment Committee approval, to active asset
management and helping to develop an exit strategy.
For Investor Partners Maven will typically invest in property transactions with a gross development
value of up to £15m, including an equity commitment of up to £6m by Maven clients.
Recent investments led by Maven include:
◼ raising £4.6m (£1.6m raised by Investor Partners) to provide high demand new residential
property at two sites in the central belt of Scotland, ideal for commuting (Renfrew and
Clackmannan), in conjunction with Ambassador Homes.
◼ a £2m acquisition of a 112,106sq ft detached industrial warehouse, in the town of Bishopbriggs,
close to Glasgow. The warehouse is within an industrial park with a range of commercial uses
and excellent transport connectivity.
◼ an investment of 50% equity in Goldcrest Communities, a new business set up to obtain
planning consents for retirement and continuing care communities contemporaneously
matching landowners and developers.
◼ raising £4.65 million of capital to acquire and develop a site for 150 purpose built student
accommodation (“PBSA”) bedspaces in Stirling, Central Scotland. This was the eleventh PBSA
development Maven has undertaken, totalling over 1,600 beds.
◼ an investment of £1.9m in the acquisition of a high quality office and warehouse property for
£3.45m in Aberdeen. The “hybrid” configuration is commonly found in Aberdeen and appeals to
the Oil and Gas sector.
There is a very wide geographical spread of investments across the whole of the UK, from
Inverness to Exeter. Regional presence and origination capability are key differentiators of the
Maven offering.
Background and history of Maven Capital Partners
Maven was established in 2009 following a buy out of the private equity division of Aberdeen Asset
Management PLC (Aberdeen) by the senior team of that business, allowing the new independent
Maven business to focus on transacting and managing private company investments. In forming
Maven, the existing investment team migrated across to the new business, along with the transfer
of the fund accounting, company secretariat, client reporting and sales & marketing functions.
The private equity business at Aberdeen comprised the original Aberdeen and Murray Johnstone
private equity teams, and had been responsible for leading all private equity investments since
2004. The current Maven partners and senior investment/portfolio executives have been in place
since that time, and Maven has now grown from 22 staff at inception to 93 investment and support
professionals.
Since launch, Maven has developed a co-investment model, to allow professional client investors to
self select on a discretionary basis.
Maven Capital Partners | 19 August 2019 5
The team has since built a specialist business and significant fund base, through both organic
growth and the strategic acquisition of fund management contracts, and is now believed to be one
of the UK’s most active SME investors. Maven’s team is able to provide finance in a range of
transaction types, normally supporting established, profitable private companies with equity finance
of up to £15m, and investing across a wide range of sectors and throughout the UK regions.
Private equity investment approach
Investment strategy, style and process
Maven’s strategy is to invest in dynamic, established private companies based in the UK,
supporting the key executives of each business to execute their business plan to maximise investor
returns and create value for all stakeholders. Maven will rarely invest in start up companies,
preferring the greater certainty of a proven business model and an entry price which gives visibility
of future ‘arbitrage gain’ when the business is sold. Maven provides equity and mezzanine finance,
typically of up to £15m per transaction to businesses with enterprise values of up to £30m at the
time of investment, and supports a range of transaction types including MBOs, acquisition finance,
expansion or buy and build strategies, replacement capital and development capital.
Maven is a generalist investor, where a key feature of its strategy is a focus on investing across a
broad range of industries, with no sector specific bias in sourcing transactions. The Maven team
has however developed specialist knowledge in a number of sectors such as IT & telecoms, niche
manufacturing, automotive and energy services, and has built an extensive UK network of non
executive director candidates, entrepreneurs and industry contacts who have experience of growing
SMEs and can offer sector specific expertise.
The Maven team is able to utilise its nationwide network of corporate finance advisors, and
experience of the SME market built up over many years, to help source, analyse and execute the
best transactions for investors. Each potential investment taken forward by a regional investment
team is subject to a detailed presentation setting out the investment case to the full Maven
Investment Committee, comprising senior members of the Maven team who have a wide range of
industry, financial and commercial experience, and many years’ experience of buying, growing and
selling businesses. Before a decision is taken on whether an opportunity is worthy of progression,
the company, its team and business model are subject to a thorough due diligence process led by
Maven and making extensive use of expert third party providers. As a result of this highly selective
process, Maven typically invests in just four to six of these private company opportunities each
year, deploying around £15m on behalf of Investor Partner client funds.
Maven also takes representation on the board of each investee company, either from its own
investment team or from a panel of vetted independent directors, which will normally include the
appointment of a chairman. This ensures that Maven can play an active role in the strategic
direction of the business during the period of investment, and that investee companies benefit from
the experience of professionals with a detailed understanding of how to help businesses succeed
and create shareholder value. Maven places great importance on the relationship with each
management team, working closely with the senior executives to ensure that each business fulfils
its potential, through a combination of financial, strategic and operational support. The key objective
is to add value and optimise performance by supporting the company in executing its business plan
and exploiting market opportunities.
Key criteria for investment selection
Maven applies a structured approach to sourcing and completing private equity transactions. The
focus is principally on companies that have a strong market position, a history of maintainable
Maven Capital Partners | 19 August 2019 6
earnings and the potential to generate both a regular paid income and a significant capital gain on
exit.
Maven only considers investing in a business that:
◼ has an entrepreneurial, balanced management team not overly dependent on one person, and
which can demonstrate a commitment to succeed and create value for the business and its
investors. Maven obtains team referencing on the key individuals from specialist agencies;
◼ offers products or services that address a defined market;
◼ has a credible marketing strategy capable of achieving planned growth and is not over reliant
on a small number of customers;
◼ is generating meaningful revenues and has good earnings visibility;
◼ has, where appropriate, intellectual property rights that are capable of being protected; and
◼ demonstrates the prospect of generating a significant multiple return on the initial investment.
Transaction/deal structure
Normally an element of each investment is made by way of secured loan stock, capable of
generating a paid yield for investors of 8% to 12%. The aim is to drive an immediate income stream
from each private company asset and target a total return of 2x to 5x cost over a holding period of
three to five years, with the principal of the return coming at exit, normally via a trade sale or
acquisition by a secondary private equity buyer.
Property investment approach
Investment strategy, style and process
Maven invests only in the UK market, and has developed a strong track record in the residential,
hotel, student accommodation, land and planning and office space sectors. Maven’s approach is to
offer professionally appraised property deals, typically structured to generate attractive returns
through a combination of a potential development gain element and added value through
acquisition and active asset management.
Opportunities generally cover (i) development of land or existing property, with Maven leading the
transaction and managing the project to create an income producing property to sell or manage, or
(ii) investment property involving an existing property, where Maven aims to add value and
generate returns through active asset management, including rent reviews, lease extensions,
opportunities for possible changes of use, or refurbishment.
Maven appraises a large number of prospective investments, but expects to invest in only around
four to six property projects each year, and only in circumstances where it is satisfied that the
transaction meets the risk/return profile of its investor base, typically raising up to £15m pa from
Investor Partners in supporting those transactions. Every aspect of a prospective property
investment is subject to a rigorous due diligence and approval process, to ensure that downside
risk is minimised and healthy risk adjusted returns can reasonably be expected. At an early stage in
the process, Investor Partners will receive an Investment Memorandum setting out the opportunity,
which includes a market and project analysis, a summary of due diligence findings, forecast returns
and timing of exit.
Key criteria for investment selection
Maven applies the same disciplined approach to property asset selection as for private equity. Each
property investment will typically be:
◼ in a sector and location where there is proven occupational demand;
Maven Capital Partners | 19 August 2019 7
◼ managed by an experienced developer and professional team;
◼ subject to a complete development plan or asset management strategy, including risk
assessment and exit proposals;
◼ subject to extensive due diligence, covering all relevant property and financial matters such as
an independent valuation report; and
◼ based on a detailed financial appraisal and with terms having been agreed for bank debt,
where appropriate.
Transaction/deal structure
Depending on circumstances, property transactions are generally structured with Maven clients
providing equity, alongside senior bank debt at a level of 50% to 65% loan to value. The aim is to
generate a return in the range 1.3x to 1.8x the initial investment on development projects, and/or an
IRR of not less than 15%, over a target holding period of two to four years (investment property
projects may forecast a longer holding period, depending on the characteristics of the investment).
Returns are likely to be crystallised from a sale of the property, although funds may also be
released through refinancing or cash flow generated by the investment.
In each case Maven is the general partner (GP) or designated member of an investment
partnership (a limited partnership vehicle) which owns the property. Maven as GP has overall
responsibility for day to day management of the partnership, attending monthly meetings and
project managing the underlying investment.
Maven as an asset manager
The expertise that Maven can access means that it has the capability to act as an asset manager
on behalf of third party investors. This offering has grown in recent years to nine property
management investments being or having been managed on behalf of investors, at the time of
writing. Please refer to Appendix 5 for further information about this.
Furthermore, at the time of this report, three different investors have used Maven as an asset
manager, with an additional investment in March 2019, which has not been included in the analysis.
The principal client is based in Asia.
Risk management
Risk management is a critical facet of Maven’s approach and is backed up by many years’
experience in understanding and managing the risks involved in both private company and property
investment.
Key risk management protocols in private equity strategies include a rigorous investment selection
process, a policy of investing only in well established companies with proven management teams
and maintaining close involvement with investee companies post investment. Further downside
protection is achieved through the use of a substantial element of secured loan notes in structuring
private company investments. This generalist approach allows each client investor to build a multi
sector and geographically diverse portfolio of holdings.
Property investments are also subject to a structured investment selection process, with Maven
investing only in high quality UK opportunities located where there is an identifiable local market
demand, and the likelihood of either a development gain or the ability to add value through active
asset management.
Maven Capital Partners | 19 August 2019 8
Senior investment team profiles
Bill Nixon, Managing Partner: Bill splits his time between the Glasgow and London offices, and
has responsibility for all aspects of the Maven business, including strategy, new investment activity
and client management. At Aberdeen Asset Management (Aberdeen), Bill was head of growth
capital and in the mid 1990s was head of the private equity team at National Australia Bank. With
almost 40 years’ experience in banking, corporate finance and fund management, he is one of the
most experienced smaller company private equity practitioners in the UK. Bill chairs the Maven
Investment Committee.
Andrew Craig, Partner: Andrew joined Aberdeen in 2004, having previously been with Bank of
Scotland corporate banking in Edinburgh where he was an associate director of integrated finance,
working primarily on UK mid market buy outs. Prior to joining Bank of Scotland in 1999 he worked
in business and corporate banking at Clydesdale Bank for ten years.
Andrew Ferguson, Partner: Andrew splits his time between the Birmingham and London offices
and is responsible for new investments in the Midlands and southern England. He joined Aberdeen
in 2003, having previously had co responsibility for the European operations of Freedom
International, a Canadian investment company. Prior to that, he worked for CIBC in its investment
bank, structuring debt and derivative packages to fund its European investment portfolio.
Stella Panu, Partner: Stella is based in London and is responsible for new unlisted investments, as
well as Maven’s AIM portfolio. She joined Aberdeen in 2005, following three years as a corporate
finance executive at London broker Seymour Pierce, where she advised companies listing on AIM
and managed a VCT. She has also worked for PwC, The World Bank and the Raiffeisen Investment
Fund.
David Milroy, Partner: David is responsible for new private equity investments in Scotland and
supporting a number of Maven portfolio companies, and joined Aberdeen in 2007. He started his
career as a scientist with GlaxoSmithKline then was a clinical pharmacist before moving into
international consultancy with Deutsche Bank, followed by fund management roles in the life
sciences and technology sectors.
Ewan MacKinnon, Partner: Ewan is responsible for sourcing and executing new private equity
investments in the north east of Scotland, as well as energy services investments across the UK.
Ewan joined Maven in 2009 having previously worked for Johnston Carmichael where he spent
three years in the corporate finance team. Previously Ewan worked in industry, latterly as managing
director of a multi store retail chain, before leading the disposal to a FTSE listed business.
Andrew Whiteley, Partner: Andrew is responsible for transacting property investments across the
UK, principally in the south east of England. Andrew joined in 2013 to help develop Maven’s
property investment business, having previously been co head of property at Hotbed, responsible
for sourcing, structuring and executing property transactions as well as asset managing the existing
portfolio. He started his career at Credit Suisse Asset Management, before moving to Jupiter Asset
Management and then New Star Asset Management where he helped run its £2bn flagship UK
commercial property fund.
Colin Anderson, Partner: Colin is responsible for transacting property investments and managing
complex construction based development projects. Colin joined Maven in 2014 to help grow the
property investment business, having spent over 10 years with the Royal Bank of Scotland, where
he established and led the Corporate Development & Property Finance team for Aberdeen & North
of Scotland region. Prior to RBS he worked with Ernst & Young in Glasgow and New Zealand in
audit, transaction services and corporate recovery.
Maven Capital Partners | 19 August 2019 9
Suzanne Lupton, Partner: Suzanne has responsibility for administering the Maven Investor
Partner business and provides general business support to the Maven team, including in areas
such as investor relations and compliance. Suzanne joined Maven in August 2010 from Bank of
Scotland Private Banking where she was responsible for managing a portfolio of high net worth
clients. She has worked in financial services for 23 years.
Julie Glenny, Investment Director: Julie is responsible for transacting private equity investments
across Scotland, as well as portfolio management activities post investment. She joined Maven in
2011 from Bank of Scotland, where she was a Director of Corporate Banking and held a number of
SME transaction related roles.
Ryan Bevington, Investment Director: Ryan is responsible for new private equity investments
across the north of England and sits on the board of a number of portfolio companies. He joined
Aberdeen in 2007 having previously worked for the corporate finance private equity team of
PricewaterhouseCoopers in Manchester.
Melanie Goward, Investment Director: Melanie is responsible for transacting new early stage and
technology private equity investments across the South and South West of England and Wales.
She joined Maven in 2016 from Finance Wales, where she was part of the technology ventures
team and fund manager for the Wales Technology Seed Fund, providing funding to help businesses
commercialise and bring to market innovative products and services across a range of sectors.
Prior to this she worked as an investment director with Nesta Investments focusing on early stage
healthcare investments, as well as in technology sector finance at Lloyds TSB Corporate, providing
debt finance to high growth companies.
Michael Vassallo, Investment Director: Based in our Newcastle office, Michael is responsible for
new investments across the North East of England and manages the North East Development
Capital Fund and Finance Durham Fund. He joined Maven in March 2017 having previously worked
for FW Capital in Newcastle where he spent five years in its SME investment team leading
transactions across the North East. Previously, Michael worked at Brewin Dolphin in Newcastle and
London where he spent over eight years in the investment banking team working as an associate
director on a range of listed company fund raises.
Tom Purkis, Investment Director: Tom is based in Maven’s Birmingham and London offices and is
responsible for sourcing and executing new private equity investments across the Midlands and the
south of England. Tom joined the team in 2015 from Grant Thornton where he was an associate
director in the M&A team in London. At Grant Thornton Tom advised on a wide range of private and
public company transactions for both private equity and corporate clients. Prior to this Tom started
his career in Business Restructuring before moving into Transaction Services.
Ramsay Duff, Investment Director: Ramsay helped to establish Maven’s property team after
joining in 2011 following the acquisition of his previous business, HM Corporate Solutions, which he
ran in partnership with Glasgow based commercial law firm Harper Macleod. Previously he worked
with ING Barings and Charterhouse Securities in Edinburgh.
Richard Elliott, Investment Director: Richard is responsible for property investments with
experience of raising and structuring debt packages. He was previously responsible for sourcing
and executing new private equity investments and supporting companies in the Maven portfolio,
and moved into Maven’s property team in early 2016. He joined Maven in 2011 from Bank of
Scotland, where he worked in the joint ventures equity team, managing a portfolio of investments
across the UK real estate sector.
Paul Johnston, Investment Director: Paul is responsible for managing property investments, as
well as investor and developer relationships, and has a detailed knowledge of the UK hotel sector.
Paul joined Maven in early 2016, after 12 years as a partner and director with The Hamilton
Portfolio group, a diverse investment and advisory company based in Glasgow, before establishing
Maven Capital Partners | 19 August 2019 10
his own advisory business, Bowmont Capital Partners. He has also been a director of a number of
public and private companies, and previously worked with Ernst & Young.
Sensitivities/risks: Higher risk; limited liquidity
These investments are intended for professional clients and eligible counterparties1 only.
Investments will be subject to all of the general risks associated with investing in unquoted
or private companies, and in property transactions.
Higher degree of risk
An investment directly into an unquoted or private company, or into commercial property, carries a
higher degree of risk than many other forms of investment and may be difficult to realise. 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. Investors should be prepared to reduce this risk by building a diversified portfolio.
Difficult to realise
As shares in private companies are not publicly traded, they may be difficult to realise and investors
are liable to be locked into such investments for a number of years. Investor Partners can only
transact and exit on the same terms, and at the same time, as Maven. The same applies to
property holdings where it is normally not possible to sell an individual share in a property
investment partnership.
Difficult to value
Investments in private companies are inherently difficult to value, with the primary value realised at
time of exit. Maven values private equity investments in accordance with the International Private
Equity and Venture Capital Valuation guidelines. Property developments can also be difficult to
value until completion. Where necessary, investments will be valued in accordance with the Royal
Institution of Chartered Surveyors (RICS) valuation standards.
Past performance is not a guide to future performance
Past performance is not a guide to future performance. Reliance on this information may expose
the investor to a significant risk of losing any property or assets invested.
Overview of investment return history
Analysis of Maven’s private equity investment performance
Since inception to December 2018, Maven has sourced, invested and realised 22 private equity
investments. On this portfolio a 2.9x multiple of cost has been achieved and an IRR of 29.5%.
During the same period, 34 private equity investments have been made, which have yet to be
1 Suitable only for professional clients and eligible counterparties as defined by FCA rules. Investment in Maven’s
private equity and property transactions is suitable only for professional clients and eligible counterparties, who
are strongly recommended to consult an authorised financial adviser. In practice, this means that Investor
Partners should be either institutional investors or those individuals with sufficient knowledge, expertise and
experience to be able to understand and evaluate the risks involved in making these types of investments and
who can bear any potential loss, up to and including the full amount invested. Professional clients and eligible
counterparties are not afforded the same protections under FCA rules as retail clients.
Maven Capital Partners | 19 August 2019 11
realised. As at December 2018, these unrealised investments have generated a 1.2x multiple of
cost and a 5.8% internal rate of return.
Based on the data supplied by Maven, we have analysed the performance of these investments,
which are listed in Appendix 1: Performance analysis of Maven’s initiated and realised private
equity investments and Appendix 2: Performance analysis of Maven’s initiated and unrealised
private equity investments. These show that Maven has achieved an impressive IRR in most cases,
with a positive IRR shown by 21 of 22 (95%) realised new private equity investments and 18 of 34
(53%) of unrealised investments. This reflects Maven’s focus on investing predominantly in well
established companies with proven management teams, as opposed to investment in seed
capital/start up stage companies where greater returns are possible but the investment is subject to
a higher risk of failure.
Investments made in the first half of 2019
Maven has continued to build on its expertise and has made further investments, which are not
included in the appendices, within the private equity and property markets. This demonstrates its
ability to participate in suitable opportunities. Its further investments include:
Private equity
Investor Partners invested alongside the Maven UK Regional Buyout Fund, which led the MBO of
CMS Window Systems, making Maven’s largest equity investment to date. CMS is a leading end to
end provider of premium window and door solutions.
Property
◼ The provision of a secured mezzanine loan of £1.5m, providing part of the funding for a £13m
development of a 127 bedroom Holiday Express hotel in Barrow-in-Furness.
◼ An £18.2m transaction for the acquisition, subject to planning consent, and subsequent
development of 122 bed student accommodation development on a site close to Edinburgh city
centre, for a new third party client. The site will be developed over six floors, with various onsite
amenities.
Private equity realised performance: 2.9x cost; 29.5% IRR;
The overall average multiple of cost was 2.9x and the average IRR of private equity investments
initiated and realised by the Maven team from inception to December 2018 was 29.5% (see
Appendix 1). Of the 22 realised investments analysed, 10 achieved an average multiple of cost of
more than 2.9x. Exhibit 1 illustrates the range of returns achieved by Maven on realised
investments up to December 2018.
There have been three recent exits from the Investor Partner portfolio. In October 2018 Maven
exited from its investment in Castlegate 737 (Cursor Controls), a developer and manufacturer of
human machine interface devices for some of the world's most demanding environments. The sale
realised a 2.64x multiple of cost and an IRR of 37% for Investor Partners in just over three years.
Maven Investor Partners exited its investment in Indigo Telecom Group in December 2018
generating a return of 4.23x on the original cost. Maven led the management buyout of Indigo
Telecom in 2016 and during the term of its investment supported the business with the strategic
acquisition of Belcom247 in September 2017, together forming the enlarged Indigo-Belcom Group.
There was a profitable exit from Incremental Group, delivering a 3.15x return for investors and an
IRR of 96%. Maven’s Investor Partner network invested in the business in 2016; since then
Incremental has grown significantly. Incremental is a market leading digital technology services
business, employing 125 people across five sites in Glasgow, London, Manchester, Inverurie and
Northwich.
Maven Capital Partners | 19 August 2019 12
Exhibit 1: Performance analysis of Maven’s initiated and realised private equity investments since inception*
Source: Maven Capital Partners, Edison Investment Research. Note: * May 2006 to December 2018. See detailed analysis in Appendix 3. Indicates average IRR and multiple of cost achieved across realised investments. The squares indicate each of the realised investments. The triangle denotes the summary figure (weighted average).
Private equity unrealised performance: 1.2x cost; 5.8% IRR
There have been 34 private equity investments made since inception that remain unrealised. At
December 2018, these have generated an overall an average multiple of cost of 1.2x (see Appendix
2) and an average IRR of 5.8%. Seven unrealised investments are still valued on a cost basis, as
they are at an early stage, versus the completed investment to divestment cycle for those
investments that have been realised.
In addition, for unrealised investments a 15% liquidity discount is factored into the valuation when
this is shown on an earnings basis. On exit, there is often a premium achieved on this conservative
discounted valuation, as well as the receipt of any redemption premium (a pre determined amount
payable on final repayment of the loan stock, and typically representing up to 30% of the amount of
the loan). Of the 33 investments that are unrealised, 13 are valued on an earnings basis and, of
these, 10 are showing a positive IRR. Provision against cost has been made in respect of nine
holdings.
Exhibit 2 illustrates the performance at December 2018 on unrealised investments made by Maven
since inception.
Exhibit 2: Performance analysis of Maven’s initiated and unrealised private equity investments since inception*
Source: Maven Capital Partners, Edison Investment Research. Note: *May 2006 to December 2018. See detailed analysis in Appendix 2. Indicates average IRR and multiple of cost achieved across unrealised investments. The squares indicate each of the unrealised investments. The triangle denotes the summary figure (weighted average).
0
1
2
3
4
5
6
7
8
-150.0% -100.0% -50.0% 0.0% 50.0% 100.0% 150.0%
Multip
le o
f cost (x
)
IRR (%)
0.0
0.5
1.0
1.5
2.0
2.5
-100.0% -50.0% 0.0% 50.0% 100.0% 150.0%
Multip
le o
f cost (x
)
IRR (%)
Maven Capital Partners | 19 August 2019 13
Investor Partner: Track record performance
Since the inception of Investor Partners, there has been participation in 56 private equity
transactions between 2007 and December 2018. This track record, summarised in Exhibit 3,
demonstrates a healthy return on both realised and unrealised investments, with overall
performance to December 2018 recording an average MoC of 2.9x and 1.2x respectively. Readers
should note that these performance data have been calculated before payments to Maven for
annual and performance related fees under the co-investment agreement.
Exhibit 3: Track record of significant co-investors January 2007 to December 2018
Number of investments
Total cost Income received
Capital proceeds
Unrealised value
Total value
Surplus over cost
IRR Multiple of cost
£m £m £m £m £m £m % x
Realised 22 22.23 9.36 54.98 0.00 64.34 42.11 29.5 2.9
Unrealised 34 80.26 11.32 7.95 76.22 95.50 15.23 5.8 1.2
Total 56 102.49 20.68 62.92 76.22 159.83 57.34 20.3 1.6
Source: Maven Capital Partners. Note: IRR - calculated as if one investment; multiple of cost - simple arithmetic average.
Definitions of calculation methods (supplied by Maven)
IRR (internal rate of return) is an annualised compound percentage return, which is calculated by
time weighting the amounts received (income and capital) plus, where unrealised, the current
valuation in relation to all amounts paid to acquire the investment. The overall realised and
unrealised portfolio averages (as shown in Appendices 1 to 4 and in Exhibit 3) have been
calculated as if all transactions were one investment.
MoC (multiple of cost) is a straight calculation of total value (= income + proceeds + unrealised
value) divided by total cost. An MoC of 1 equates to no gain/loss on the investment, whereas an
MoC of 2 equates to a 100% gain in comparison to total cost. This metric is not time-weighted.
Analysis of Maven’s property investment performance
Maven has a team of eight senior executives covering the UK property market who have extensive
experience of completing transactions across a range of sub sectors. This report aims to provide
some analysis of those investments.
Maven targets a typical holding period of two to four years, with each property investment
structured to generate attractive returns, typically offering a development gain element or the
potential to add value through active asset management.
The first co investment property investment was made in 2013, with four profitable exits for Investor
Partners achieved to date. It should be noted that property investments tend to be held for less time
than private equity investments. They are asset backed which helps to reduce risk but the shorter
holding investment periods usually results in these investments generating lower returns.
The Maven property team has completed 27 investments at time of publication, of which 18 have
been accessible to Investor Partners, in locations throughout the UK. These cover a wide
geographical spread and comprise development projects involving hotels, student accommodation
and commercial offices, land and planning, as well as an investment in a portfolio of office
accommodation. Maven has also completed nine investments in the capacity of asset manager on
behalf of a third party overseas investor, which are excluded from this analysis.
The summary below, and tables at Appendices 3 and 4, list the realised and unrealised investments
made by Maven’s property team since 2013. Of the 18 investments made by Maven for Investor
Partners to date, four have been realised, as shown in Appendix 3: New property investments
(realised).
Maven Capital Partners | 19 August 2019 14
Property realised performance: 1.77x cost; 26.25% IRR
The overall average multiple of cost was 1.77x for the four property investments realised by Maven
and the weighted average IRR achieved was 26.25%. The IRR is higher than would be ordinarily be
anticipated, due to the investment in 333 Bath Street being exited within one year. Transactions are
structured with the aim of achieving an IRR of greater than 15% at the point of exit.
There have been four exits within the property portfolio (see Appendix 3) which could be accessed
by Investor Partners. Two of these exits have been since the end of March 2016. During October
2018 Maven Property sold Marketgait Apartments, a 116 bed purpose built student accommodation
development in Dundee. The asset was sold for £9.5m generating a return of 2.37x for Maven
Investor Partners in just over three years. Maven purchased the property for £1.55m in April 2015
and, following a comprehensive £5m internal refurbishment, Marketgait Apartments opened for the
start of the 2016/17 academic year. It should be noted that Marketgait Apartments used to be called
Courthouse Apartments.
In the same month, Maven Property completed the £14.5m sale of Hotel Indigo Glasgow, a 4 star,
94 bedroom hotel and restaurant in the centre of the city, generating a return of 1.93x for investors
The structure of the transaction included the sale of the Freehold (in Scotland ‘Heritable’) interest in
the hotel to a Ground Rent Fund and of the resultant long leasehold interest to Heeton, which
acquired the trading business of the hotel. There has been little precedent in structuring hotel sales
in this way, but Maven’s significant experience of hotel development funding structures has enabled
it to split these two interests in the hotel and drive additional value for its investors.
Property unrealised performance
We have listed the unrealised investments (as at December 2018) in Appendix 4: New property
investments (unrealised), based on the data supplied by Maven. In total, 14 of the 18 property
investments for Investor Partners are either completed or they are BPRA investments requiring
longer investment.
As returns are not currently in the public domain for any of the unrealised investments, it is not
possible to show meaningful IRR or multiples of cost. This reflects the relatively short holding period
of the unrealised property portfolio. It should be noted that Maven will typically value property
investments at cost until such time as full realisation proceeds are able to be disclosed. Carrying
values may be prudent as a consequence of this approach.
Co-investment agreement: Important terms and conditions
The main criteria and details included in the agreement between the Investor Partner and Maven
are:
The Investor Partner must be, and remain eligible as, a professional client or eligible
counterparty as defined by FCA Rules (see footnote on page 9). An Investor Partner is required
to inform Maven if they cease to meet either of those criteria.
Opportunities to invest in later stage private companies with a value of up to £30m pre
investment: private equity investment opportunities are primarily in companies with an enterprise
value of up to £30m (few of Maven’s transactions have an EV in excess of this). Maven will provide
its fully researched Investment Committee paper, or equivalent report, to Investor Partners when an
opportunity is offered. Maven has full discretion to decide not to proceed with any investment.
Opportunities to invest in property transactions with a gross development value of up to
£15m: for property investment, the transactions will typically be in assets with a gross development
value of up to £15m, including an equity commitment of up to £6m by Maven clients. Similarly to
Maven Capital Partners | 19 August 2019 15
private equity, Maven will provide a fully researched investment paper to Investor Partners, and
Maven has full discretion to decide not to proceed with any investment.
Investment unit size – typically £25,000 to £500,000 per investee: the amount of investment
made by an Investor Partner in any one transaction (i.e. in any one investee entity) is typically
between £25,000 and £500,000. Subject to shareholder preemption rights, the Investor Partner is
entitled to participate in follow on investments in any of their portfolio companies on a pro rata basis
with Maven. Each transaction is made through subscription to units in a limited partnership, which is
managed and operated by Maven as general partner (GP). Each Investor Partner is provided with a
half yearly investment report, which contains details of each of their holdings.
Fees payable to Maven: in respect of a private equity transaction, Investor Partners pay to Maven
a general partner profit share (GPPS) of 1.75% pa on the amount invested, which can be offset
against any ongoing income distributions as detailed below.
For property investments, Maven charges an ongoing management fee to the property investment
partnership (in respect of regular strategic and asset management activities); no fees are charged
directly to Investor Partners as they are reflected in the overall capital return.
Income from investments: income generated from the loan stock element of private equity
investments is distributed half yearly to the Investor Partner and is paid net of Maven’s GPPS for
the respective period. For property investments, any surplus income generated within the property
investment partnership may be available for distribution on a semi annual basis.
Disposal or return of capital: each Investor Partner is required to dispose of the whole or the
same proportionate part of its investment in any one investee entity on the same terms and at the
same time as Maven.
Maven is entitled to 20% of the profit on return of capital: to ensure that the investment team is
incentivised to optimise investor returns, Maven, as the GP, is typically entitled to 20% of the
excess over cost on an investment (the “carried interest” at exit) on any return of capital. This is
calculated as the total receipts less the aggregate amount invested in that investment. This
structure ensures that there is an alignment of interests with the underlying Investor Partners.
Maven Capital Partners | 19 August 2019 16
Appendix 1: Private equity investments (realised)
Exhibit 4: Private equity investments (realised)
Name Investment date
Exit date IRR Multiple of cost (x)
Incremental Group Limited 29 Nov 2016 29 Nov 2018 96.0% 3.15
Indigo Group Holdings 10 Jul 2016 03 Dec 2018 86.7% 4.23
ID Support Services Holdings 17 Mar 2007 03 Jul 2008 73.2% 1.76
Dalglen 1150 (Walker Technical Resources) 31 May 2009 04 Jul 2011 73.0% 3.02
Crawford Scientific 19 Aug 2014 18 Oct 2017 69.8% 4.65
Westway Services 16 Jun 2009 09 Dec 2015 56.0% 6.80
Nenplas Holdings 30 May 2006 04 Mar 2013 38.7% 3.12
Nessco Group 01 Jun 2008 05 Jul 2012 38.5% 2.79
Castlegate 737 (Cursor Controls) 30 Jun 2015 16 Oct 2018 37.0% 2.64
SPS (EU) 10 Feb 2014 01 Dec 2017 35.7% 2.94
Intercede (EFC Group) 03 Dec 2009 28 Nov 2014 33.0% 3.73
Box Holdco Limited 20 Sep 2009 13 Jul 2015 30.1% 4.60
Six Degrees (Tosca Penta Exodus & Mezzanine LP)* 19 Sep 2011 22 Jul 2015 24.8% 2.28
Oliver Kay Holdings 12 Jan 2007 12 Nov 2012 21.6% 2.26
Funeral Services Partnership 23 Mar 2007 21 Sep 2009 20.7% 1.54
Steminic (MSIS) 24 Apr 2007 26 Jun 2015 18.3% 3.48
ATR (Countcar) 28 May 2007 01 Mar 2012 15.4% 1.72
Endura* 12 Dec 2014 28 Feb 2018 15.2% 1.57
Venmar (XPD8 Solutions) 24 Jun 2010 27 Oct 2015 12.6% 1.78
Atlantic Foods Group 08 Feb 2008 31 May 2013 11.8% 1.75
Training For Travel 01 Apr 2008 01 May 2015 -37.9% 0.36
Broomco (4136) Limited 03 Jul 2008 28 Aug 2015 -99.1% 0.00
Total (22)
Summary**
29.5% 2.90
Source: Maven Capital Partners. Note: This is a list of Maven’s private equity investments initiated between May 2006 and December 2018 and currently realised. *Investment not led by Maven. **calculated as if one investment.
Maven Capital Partners | 19 August 2019 17
Appendix 2: Private equity investments (unrealised)
Exhibit 5: Private equity investments (unrealised)
Name Investment date Valuation basis IRR Multiple of cost (x)
EE Smith 28 Jan 2016 Earnings 33.0% 2.26
Attraction World 08 Dec 2010 Earnings 31.8% 2.15
GEV Holdings 28 Oct 2015 Earnings 21.9% 1.76
Global Risk Partners (Maven Co-Invest Endeavour)* 01 Nov 2013 Earnings 17.7% 2.00
Torridon Capital 12 Apr 2010 Cash 17.6% 2.21
Vodat Communications 26 Mar 2012 Earnings 15.9% 2.36
Cat Tech International 29 Mar 2012 Earnings 15.3% 2.22
CB Technology 19 Dec 2014 Earnings 13.0% 1.58
Space Student Living 12 Jun 2011 Recovery proceeds 11.9% 1.48
DPP (Ensco 969) 20 Mar 2013 Earnings 10.4% 1.54
Healthpoint 03 Feb 2017 Cost 8.5% 1.16
Prime Document 04 May 2016 Earnings 8.4% 1.22
RMEC 06 Apr 2014 Earnings 6.3% 1.29
Westfield Medical 30 Mar 2016 Earnings 5.2% 1.12
ProspectSoft 23 Mar 2017 Cost 4.8% 1.09
Glacier Energy Services 25 Mar 2011 Earnings 4.5% 1.29
Hedgehog Lab 18 Sep 2017 Cost 1.7% 1.02
Orchidsoft Limited 10 Jun 2018 Cost 1.4% 1.01
Blacktrace holdings 25 Apr 2016 Earnings 0.0% 1.00
Altra Consultants 18 Oct 2017 Cost 0.0% 1.00
Acton Banks 14 Dec 2018 Cost 0.0% 1.00
UAP 14 Dec 2018 Cost 0.0% 1.00
FLXG Scotland 24 Oct 2010 Provision -1.4% 0.93
TC Communications 02 May 2008 Provision -2.3% 0.82
HCS Control Systems 13 Jun 2013 Provision -2.5% 0.88
R&M Engineering 12 Dec 2013 Provision -4.5% 0.81
ISN Solutions 10 Mar 2014 Provision -5.8% 0.80
Fathom Systems 17 Dec 2014 Provision -6.2% 0.78
Lawrence Recycling & Waste Management 23 Jan 2009 Recovery proceeds -20.9% 0.20
D Mack 23 Dec 2013 Recovery proceeds -23.8% 0.37
CHS Engineering Services 17 Dec 2010 Provision -31.2% 0.36
Lambert Contracts 17 Jun 2013 Provision -39.0% 0.32
Fletcher Shipping 28 Aug 2013 Provision -86.7% 0.14
Total (33)
Summary**
5.8% 1.20
Source: Maven Capital Partners. Note: This is a list of Maven’s private equity investments initiated between May 2006 and December 2018 and currently unrealised. *Investment not led by Maven. **calculated as if one investment.
Maven Capital Partners | 19 August 2019 18
Appendix 3: Property investments (realised)
Exhibit 6: Property investments (realised)
Initial investment Type IRR (%) Multiple of cost (x)
Courthouse** Apartments
(Dundee)
Apr-15 Student accommodation 31.2 2.37
Hotel Indigo
(Glasgow)
Dec-13 Hotel 13.9 1.93
Claremont House - Glasgow
Dec-13 PBSA 17 1.33
333 Bath street - Glasgow
Jan-15 PBSA 58*** 1.47
Total (4)
Average* 26.25*** 1.77***
Source: Maven Capital Partners. Note: Any small residual amount of sale proceeds still to be paid to investors would have no meaningful impact on the returns shown. *average – calculated as if one investment. **known as Marketgait Apartments. ***This investment was exited within one year, which unnaturally inflated the IRR of the realised portfolio.
Appendix 4: Property investments (unrealised)
Exhibit 7: Property investments (unrealised)
Initial investment
Type Valuation basis
IRR (%)** Multiple of cost (x)
Maven Capital (Llandudno)* Apr-13 Hotel Cost N/A N/A
Maven Capital (Telfer House)* Apr-14 Hotel Cost N/A N/A
Maven Capital (Marlow) May-14 Office refurbishment Cost N/A N/A
Maven Capital (Cardiff)* Apr-15 Hotel Cost N/A N/A
Maven Capital (Maidenhead) Sep-15 Office refurbishment Cost N/A N/A
Maven Capital (Paradigm) Dec-15 Commercial property portfolio
Cost N/A N/A
Maven Capital (Shire Hall Durham)* Apr-16 Hotel Cost N/A N/A
Maven Capital
(Inverness)*
Dec-16 Hotel Cost N/A N/A
Maven Capital
(Douglas House)*
Apr-17 Hotel Cost N/A N/A
Maven Capital
(Ambassador)
Aug-17 Residential Cost N/A N/A
Maven Capital
(Goldcrest)
Mar-18 Land & Planning Cost N/A N/A
Maven Capital
(Westerhill Road)
Jun-18 Office/Industrial Cost N/A N/A
Maven Property
(ABZ)
Aug-18 Office/Industrial Cost N/A N/A
Maven Property
(Carters Yard)
Aug-18 PBSA Cost N/A N/A
Total (14) N/A N/A
Average*** N/A N/A
Source: Maven Capital Partners. Note: *These investments have been structured using BPRA, which was available for refurbishing empty commercial properties (typically hotels) in qualifying areas and provided valuable tax relief at the time of the investment. Depending on when the investment was completed, it must be held for five or seven years from the point it is first used or available for letting following redevelopment, to ensure that the investor benefits from the BPRA. Therefore, Maven would typically expect to hold such investments for eight to nine years in total (including the time for redevelopment). BPRA ended in April 2017, after which no new BPRA investments will be made. **Unrealised property investments held by Maven are generally valued on a cost basis until a realisation is achieved. Seven of the 14 property investments listed were completed within the two years before date of analysis. As returns are not currently in the public domain for any of the unrealised investments, it is not possible to show meaningful IRR or multiples of cost. ***IRR: average – calculated as if one investment; multiple of cost: average – simple arithmetic average.
Maven Capital Partners | 19 August 2019 19
Appendix 5: Maven managing property for third parties
Exhibit 8: Property investments managed by Maven on behalf of third parties (realised and unrealised).
Initial investment Type Valuation basis IRR (%) Multiple of cost (x)
Selly Oak - Birmingham
Mar-15 Development Cost 16.1 1.66
Gorgie Road – Edinburgh
Sep-15 Development Cost 18.4 1.56
Fontenoy Street - Liverpool
Sep-16 Development Cost N/A N/A
Nevilles Cross - Durham
Dec-16 Development Cost N/A N/A
Frog street - Exeter Jan-17 Development Cost N/A N/A
Hinton Rd - Bournemouth
Jun-17 Development Cost N/A N/A
HbH - Manchester Nov-17 Development Cost N/A N/A
Stirling - Forthside Nov-17 Development Cost N/A N/A
Southampton Nov-18 Development Cost N/A N/A
Total (9)
Summary* 17.25 1.61
Source: Maven Capital Partners. Note: *IRR: average – calculated as if one investment; multiple of cost: average – simple arithmetic average. Averages based only on realised investments.
Maven Capital Partners | 19 August 2019 20
General disclaimer and copyright
This report has been commissioned by Maven Capital Partners and prepared and issued by Edison, in consideration of a fee payable by Maven Capital Partners. Edison Investment Research standard fees are £49,500 pa
for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the
provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.
Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of
this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information
or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.
Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in
connection with the access to, use of or reliance on any information contained on this note.
No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or
prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The secur ities described in the report may not be eligible for sale in all jurisdictions or to certain categories of
investors.
Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any
positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to
Edison's policies on personal dealing and conflicts of interest.
Copyright: Copyright 2019 Edison Investment Research Limited (Edison). All rights reserved FTSE International Limited (“FTSE”) © FTSE 2019. “FTSE®” is a trade mark of the London Stock Exchange Group companies
and is used by FTSE International Limited under license. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent.
Australia
Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial
Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice
given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having
regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like
instrument.
New Zealand
The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the
purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the
topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in
relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is
intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making
an investment decision.
United Kingdom
This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A
marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any
prohibition on dealing ahead of the dissemination of investment research.
This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article
19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49
of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be
distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.
This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.
United States
The Investment Research is a publication distributed in the United States by Edison Investment Research, Inc. Edison Investment Research, Inc. is registered as an investment adviser with the Securities and Exchange
Commission. Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a
bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison
does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security,
or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Frankfurt +49 (0)69 78 8076 960
Schumannstrasse 34b
60325 Frankfurt
Germany
London +44 (0)20 3077 5700
280 High Holborn
London, WC1V 7EE
United Kingdom
New York +1 646 653 7026
1,185 Avenue of the Americas
3rd Floor, New York, NY 10036
United States of America
Sydney +61 (0)2 8249 8342
Level 4, Office 1205
95 Pitt Street, Sydney
NSW 2000, Australia