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New Investments

Plastic Surgeon Fine Finishers
Matrix has invested £2 million to finance the management buyout of Plastic Surgeon Fine Finishers (Plastic Surgeon), the UK’s founder and market leader in providing cosmetic repair services to the UK construction and housing industry. Matrix provided an integrated debt and equity package and is taking an initial 30% stake in the business.
Based in Bovey Tracy near Exeter, Plastic Surgeon has developed a niche in servicing the construction and housing industry, with a cost reduction solution that is also environmentally friendly. Plastic Surgeon is the largest provider of repair services inside and outside the home to the construction and housing industry. Through constant innovation the company provides the widest range of repair techniques on the largest range of materials. The business has a leading customer base which includes the majority of the UK’s major national and regional house builders such as Barratt Homes, Taylor Wimpey and Bovis Homes. Clients in the commercial property market include ROK, Kier and Carillion Construction as well as in-home service providers such as British Gas. Plastic Surgeon has grown rapidly through continued investment in its own staff and it is the only company in the industry with a dedicated training centre. Currently it employs 160 people and its annual revenue is £6 million. The MBO team, led by the Managing Director, Rob Mouser, has been one of the main driving forces in the business. Tim Ross, is the investing Chairman and has significant experience in the sector having previously been on the main board at George Wimpey and Chairman of Connaught, May Gurney and other companies.
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Monsal Limited
Matrix has financed the management buyout of Monsal, a specialist environmental technology company providing advanced solutions for the water and waste sectors. Matrix Private Equity has taken a significant minority stake in the business. The transaction was originated and advised on by Cooper Parry Corporate Finance.
Monsal, based in Mansfield in Nottinghamshire, is the UK’s market leader in the provision of sophisticated Anaerobic Digestion (AD) technology to the water utilities market. AD is a well established industrial process for the treatment of biosolids that facilitates the breakdown of organic material by bacteria and which generates biogas as a by product. Biogas can be burned to produce ‘green’ electricity and attract subsidies such as Renewable Obligation Certificates (ROCs). Demand for advanced AD processes in the water sector is underpinned by regulatory requirements to reduce pathogen levels in residues and incentives to generate green energy from biogas.The MBO is being led by the Managing Director Aidan Cumiskey who has been one of the main driving forces in the business. He joined as Business Development Director in 1999 and was appointed MD in 2005. Aidan is a chartered chemical engineer and previously worked at Earthtech and Anglian Water.
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Focus Pharmaceuticals
Matrix has financed the £6 million management buy out of Focus Pharmaceuticals, a fast growing, profitable company based in the Midlands which specialises in the licensing and marketing of specialist prescription generic pharmaceuticals. The deal was structured using the integrated debt and equity package that Matrix is providing for smaller transactions. Matrix invested £3.2 million and acquired a minority stake in the business. Focus specialises in identifying and developing niche generic opportunities which fall outside the major generic pharmaceutical companies' areas of expertise. In particular, its portfolio comprises UK specific products, generally oral liquids, injectables, lotions and ointments that are difficult to source, develop and license. The transaction represents an exit for the original investor who supported the current team when they acquired the business from ADL Healthcare. The deal sees the team roll over their current holdings. Smith Cooper Corporate Finance advised management, helping them to conclude the buyout within a predetermined option agreement period. Leeds-based DWF provided legal advice to the management team whilst Harvey Ingram in Birmingham advised Matrix. Headquartered in Burton-upon-Trent, Focus was established in 2003 by the current board. It employs 15 people and has annual revenues of more than £10 million.
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Blaze Signs Holdings
Matrix has supported existing investee company Blaze Signs Holdings in financing its acquisition of a complementary business, Active Sign Maintenance, investing a further £3.7 million.
Blaze is one of the UK’s leading manufacturers of illuminated signs for national and international multi-site retailers and financial institutions.
Customers include household names such as Tesco, Sainsburys, Royal Bank of Scotland and Euro Disney.
Matrix first backed the Blaze management team in April 2006, investing £1.6 million in their £5 million secondary buyout of Blaze from Dunedin Capital Partners. The Blaze team is led by Clive Knight, Managing Director, Chris Abbott, Sales Director and Joanna Boraston, Finance Director.
Matrix was keen to support Blaze’s further expansion following its excellent commercial and financial performance in the first year after the buyout.
Active Sign Maintenance was established in 1995 and is one of a handful of illuminated sign maintenance companies with a national infrastructure and workforce that can provide a comprehensive service across the whole of the UK. Customers include B & Q, HBOS, Marks & Spencer and Sainsburys.
The transaction has combined two Kent-based businesses, each with an excellent reputation in its market. Managing Director Phil Sharman will continue to run Active Sign Maintenance and will join the Blaze Board. The deal enables the enlarged group to offer a complete “one stop shop” package of manufacturing, installation and maintenance of illuminated signs to clients. The business will be consolidated onto Blaze’s existing site in Broadstairs, but there will be no job losses. The enlarged group’s combined annual turnover is £20 million and it has 260 employees.
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DiGiCo Europe
Matrix has completed its first integrated finance deal, providing £4.6m in debt and equity to finance the £6.5m management buy-out of DiGiCo, the market-leading UK manufacturer of digital mixing consoles for the post production, broadcast, live performance and theatre markets across the world. The deal saw Matrix provide all the external finance, acquiring a significant minority stake in the business.
“We will continue to be primarily an equity provider,” said Matrix’s Jonathan Gregory. “However, there are some deals where our providing all the external finance enhances speed and certainty of delivery. We are delighted that we can now provide this flexibility for the right companies.”
DiGiCo is a highly respected global leader in the manufacture of digital audio mixing desks. It has customers in 51 countries worldwide and its key markets are the US, UK, Western Europe, Korea, Australia and Japan. DiGiCo’s equipment is used by stars such as Madonna, Kylie Minogue and Rod Stewart, as well as by the Royal Shakespeare Company and the English National Opera. Its broadcast users include BBC Scotland and Finnish TV. The company’s products were recently showcased at two of Wembley Stadium’s high profile events, the Concert for Diana and Live Earth, in which 17 of the 19 performing artists used DiGiCo equipment.
Bob Henry and Jonathan Gregory led the deal for Matrix. Menzies Corporate Finance acted as advisers to management and project-managed the transaction.
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Racoon International
Matrix has financed the £6 million management buy out of Racoon International (“Racoon”), Britain’s leading hair extensions company. Matrix has acquired a significant minority stake for a £3.5 million investment and was supported by senior debt from Barclays Bank.
Demand for hair extensions has seen significant growth in line with increased consumer spending on beauty, makeover and lifestyle products. Racoon is recognised as the manufacturer of choice by hairdressers, celebrities and consumers and supplies its product through 2,000 salons in the UK and business partners in 14 other countries. Banbury-based Racoon was established in 1995 by Peter Holloway, the principal vendor. Racoon has more than doubled its revenues over the last two years and its products are used by celebrities including Emma Bunton, Sophie Anderton and Sharon Osbourne.
Matrix was particularly attracted for two reasons. Racoon is the undisputed UK market leader and the only true brand in its category. The investment offers the opportunity to capitalise on Racoon’s position in the UK and to back Managing Director, Eva Proudman and her team in accelerating expansion into other overseas markets. Eric Tung led the deal for Matrix with support from Ashley Broomberg.
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Archived News

Realisations

Holloway White Allom
Matrix has re-capitalised the up-market construction business Holloway White Allom using £5 million of the company’s surplus cash and a £12 million debt package from Lloyds TSB.
Together with an earlier refinancing in 2005, the deal has delivered a 5x cash multiple and locked in a minimum 81% IRR for MPEP. In this transaction, Matrix’s shareholding has increased from 17 per cent to 21 per cent as some of the original management team has retired.
Holloway White Allom is a leading provider of specialist services to the high-end residential and commercial market covering construction (refurbishment and new build), maintenance, turnkey projects, special projects and audio visual/security and has a history dating back to 1882. It constructed some of London’s landmark buildings including The Old Bailey and The Bank of England. 2007 turnover was £67 million. Although there is uncertainty about some areas of the construction industry, Holloway White Allom reports unprecedented demand for its services.
Matrix invested £1 million to back the management buyout of Holloway White Allom, led by its Managing Director and Finance Director, Bob Cole and Nigel Diver in November 2004.
The re-capitalisation was managed on behalf of MPEP by Partner, Bob Henry, who commented, “Holloway White Allom is a fantastic company with a superb management team. Our investors have enjoyed an excellent return, but with Bob and Nigel continuing to drive the business, we think the best is yet to come”.
MPEP Chief Executive, Mark Wignall commented, “Holloway White Allom is a model case study of why buyouts are best. Under Bob and Nigel’s stewardship, turnover, operating profits and employee numbers have doubled. The MBO investment has already created seven management millionaires and made Matrix VCT investors 5X. And, at 21%, we now have a higher share stake in the Company than when we first invested!”
This is the fifth successful exit for MPEP in 2008 following its recent realisations in BBI Holdings, Ministry of Cake, Gyro and Apollo Lifts.
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Apollo Lifts Holdings
Matrix has sold its stake in Apollo Lifts holdings Ltd (Apollo), one of the UK's leading independent lift contractors, for £4 million as part of a secondary buy out to Iceni Capital, realising 3 times its original investment and an IRR of 34 per cent. The investment in 2004 and subsequent exit were made on behalf of MPEP’s client, the Baring English Growth Fund. This is the fourth successful exit for Matrix in 2008 following its recent realisations in BBI Holdings, Ministry of Cake and Gyro. Altium Capital acted as financial adviser on the transaction.
Matrix originally invested £1.6 million in Apollo in 2004. MPEP has supported the management’s strategy of growing the business organically rather than through acquisition and since the buyout in 2004 employee numbers have increased by over 40 per cent. Apollo was founded over twenty five years ago, and the current management team led by Managing Director Martin Bettridge, has been running the business successfully for the last ten years. John Brandon, who was MPEP’s Non Executive Director throughout and led the exit, said: “This has been a very successful investment. The management team’s dedication has enabled the business to grow its turnover from £7 million in 2004 to £13.1 million in 2007. Lift repair and maintenance is a growing area within the Service sector and one that is less exposed to the current economic climate.”Other successful exits for the Baring English Growth Fund include: Secure Mail Services: realised 3.8 times original investment in September 2006 and an IRR of 40% and BBI – realised 3.7x original investment in January 2008 and an IRR of 27%.
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Gyro International
Matrix has realised over 3.2 times its original investment in Gyro, Europe’s leading B2B marketing services business. Matrix received £2.4 million from the sale following an investment in 2005 generating an IRR of 50 per cent. This is the third successful full cash exit for MPEP inside a month following its recent realisations in BBI Holdings and Ministry of Cake.
Matrix originally invested £750k in Gyro alongside co-investors to buy out one of the original founders. Gyro has made five acquisitions since the original investment as well as expanding geographically and opening offices across Europe and the US. The exit has been facilitated by an investment of over £50m from a US private equity house. The investor has taken a significant stake in Gyro with the intention of driving further international growth both organically and through acquisition. Ashley Broomberg, who led the deal for Matrix said: “This has been a very successful investment as a result of the drive and ambition of the management team of Gyro, led by Gary Brine and Richard Glasson, who have done an extraordinary job in achieving this realisation. The business is now recognised as a leading Integrated Communications Agency in Europe and we have no doubt that their recent financial successes and rapid growth is set to continue.”
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BBI
Matrix has realised over 3 times their original investment of £2.3 million through the sale of their shareholding in AIM-listed BBI Holdings plc (BBI), a healthcare business that focuses on diagnostics and diabetes. The realisation opportunity arose through BBI’s recommended all cash or shares offer by Inverness Medical Innovations.
Matrix funds have received £7.8 million proceeds over the seven year life of the investment, achieving an IRR of 31%.
BBI manufactures and supplies gold reagents which are used in millions of rapid diagnosis tests globally. More than 500 million tests take place every year that rely on the gold reagent component. These reagents are used to bind with specific antibodies or antigens in tests to provide a positive or negative visual signal.
BBI also has a growing number of diabetes care products. These include GlucoTabs which are sold in Asda and Boots to boost the strength of diabetes sufferers.
The organisation operates from 5 Locations across the UK and the USA, covering most geographical regions including, Asia Pacific, Europe and North America.
Matrix has enjoyed a seven year relationship with BBI, first backing the MBO led by Chief Executive, Julian Barnes in November 2000.
Matrix Private Equity Partners was closely involved with the business from the start of its investment, including working through some difficult and challenging times, requiring an additional investment. As a result of the support given by Matrix, Jonathan Gregory was asked to stay on the board after BBI floated on AIM in April 2004.
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Ministry of Cake
Matrix has realised 2.5 times its original investment through the sale of Ministry of Cake to the Greencore Group. Matrix has received £5 million cash from the sale and over the 26 month holding period the investment generated a 58 per cent IRR.
Ministry of Cake (formerly known as Maynard Scotts) is the leading manufacturer of desserts and cakes for the food service industry. The business was founded in 1862 by William Tanner Maynard and operates from a 12,000 sq ft purpose built freehold bakery in Taunton, Somerset with 200 employees. Around 200 product lines comprising cakes, cheesecakes and pastries are produced. It is the largest manufacturer of Chocolate Fudge Cake for food service customers in the UK. Their major customers are the key food service distributors and pub groups, including Brake Brothers, Spirit Group and the Hard Rock Café Group. Bob Henry led the deal at Matrix Private Equity. Bob Henry said: “When we backed the MBO of Maynard Scotts in September 2005, the need to re-brand the business as it transformed from a regional bakery into an international manufacturer of cakes became increasingly obvious. The management team worked hard to develop Ministry of Cake and we have worked alongside them to drive the company’s growth and development. The sale to Greencore is a natural fit and will enable additional opportunities for the company’s continued development.”
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Ruskin Homes
Matrix has realised 2.6x its investment through the sale of its shareholding in Ruskin Homes, achieving a 25% IRR over the investment's five year holding period.
Ruskin is a specialist in the development of flats and housing on brownfield sites. Matrix’s exit was through a share buyback by incumbent management, Garry Hall, Chief Executive and Ross McEwan, Finance Director.
Matrix first invested in 2002 to finance the management buy out from the Company’s founder shareholders. Over the last three years, the Company has gradually expanded its area of operations outside London and the South East. During Matrix’s involvement, Ruskin's profits have grown significantly with EBITA more than tripling from £1.2m to £3.8m. Sales have grown 35% from £14m to £19m.
Management approached Matrix earlier in 2007 with the proposed buyback. Following review of the premium to net asset value, the investor decided to conclude the off-market deal.
Matrix has been an investor in Ruskin since 2002 investing £3m at the time for a 43% stake in the business on behalf of its institutional client, the Baring English Growth Fund. The original £13m deal was supported by debt provided by Royal Bank of Scotland. Caterham-based Ruskin was founded in 1991. Ruskin was one of 14 Matrix portfolio companies in the Construction and Support Services Sectors.
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Original Additions
One of the UK’s most innovative beauty products companies has been refinanced via a debt package from RBS. The deal has repaid all Matrix's original funding but Matrix maintains the same shareholding.
The company supplies false nails and eyelashes to multiple retailers, including Boots, Superdrug, Tesco and Sainsbury’s. Forecast turnover for the current year is £21m, with export sales showing particularly strong growth.
Matrix backed the buyout of Original Additions in 2004, alongside Barclays Ventures.
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Image Source
A leading global provider of royalty-free images has been refinanced via a debt package from RBS. The deal has repaid all Matrix's original funding but maintains the same Matrix shareholding.
Headquartered in London and with offices in Cologne and New York, the company has grown rapidly over recent years, significantly increasing the number of images in its library.
Matrix backed the management buyout of Image Source in 2003. The business has since seen revenues triple and profits increase almost ten-fold. The new finance facility will enable Image Source to invest further in image creation.
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Maven Management
A UK market research agency, has been sold to marketing services group Munro Global. The deal has generated a 2 X cash return for Matrix.
High Wycombe based Maven specialises in customer and employee satisfaction surveys for European blue chip clients including Mercedes Benz, British Gas and Tesco Personal Finance.
Matrix backed the management buyout of Maven in 2000.
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Archived News

Fundraising

Matrix completed its fundraising for The Income & Growth VCT in April 2008, raising c £12 million. Total funds under management are c.£140 million.
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Matrix completed its fundraising for its Matrix Income & Growth 4 VCT in April 2007, raising c £15 million. Total funds under management are £130 million.
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Awards

The prestigious Insider Media Dealmakers South East 2008 Awards saw Jonathan Gregory win the award for Private Equity / Venture Capitalist of the Year. 400 financiers converged for the second annual awards dinner on 7 February and the winner was voted for prior to the event with each firm entitled to one vote. Jonathan Gregory is a founding partner of the team at Matrix Private Equity and the win is testament to his hard work and admirable achievements in 2007. Matrix Private Equity was also short listed for the Private Equity / Venture Capital Firm of the year award.
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Short listed three years running VCT Manager of the Year at the Investor Allstars Venture Capital Awards. Winner 2005 and 2006.
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Short listed three years running in the ‘Small Buy Out House of the Year’ category at the unquote” Private Equity Awards. Highly Commended award 2006.
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Matrix was also shortlisted for the 'House of the Year' award at the 2006 BVCA/Real Deals Private Equity Awards.
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Matrix Private Equity Partners has been named Venture Capital Firm of the Year at the Western Daily Press South West Deal Awards held on 12th October 2006. Matrix's Bob Henry also won the Individual Venture Capitalist award.
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