New UK Investor Club Launched

Tom Burroughes

19 June 2013

A new private investor club called Chelverton Investor Club has been rolled out to target “the more sophisticated investor”, holding direct stakes in private UK firms, part of a trend of “angel”-style backers of firms seeking funding.

The founder and managing director at Chelverton, David Horner, said the firm, which runs a number of funds, has already worked with private investors to put more than £45 million ($67.6 million) of capital into 13 unquoted or small- and medium-sized firms over the past eight years. The club is an extension of this work.

“With the 'green shoots of recovery' starting to show, and the number of investors looking for a more bespoke, personal approach to investing in private companies on the increase, this is the perfect time to introduce the new club,” Horner said in a statement.

Members can invest a minimum investment of £25,000, and up to £1 million, in any one company. The club will invest up to £3 million per company, with a typical enterprise value of between £500,000 and £5 million.

“These will be compelling tax-efficient investments, offering good solid returns – firms which we believe in, and which our experienced team have appraised as presenting a lower risk profile to prospective investors”, said Horner.

The investment opportunities that the club will focus on have been long overlooked by other private company equity interests, so the club will revitalise investment in UK small companies and present good value investment opportunities to investors at the same time,” he added.

Areas avoided

Unlike some other private equity providers in the small companies sector, the club will not invest in property, funds of funds, or exclusively in start-ups. Rather, it will invest in existing profitable and cash generative businesses looking to raise development and replacement capital, or undergoing management buyouts, management buy-ins, or buy-in management buyouts, Chelverton said.

The firm will not present members with third-party or consortium transactions, the statement said.

“Each opportunity will be sourced exclusively for member and investee companies, generally in lower risk sectors, where the value of the product or service is relatively modest, but the added value element high - manufacturing, professional services, healthcare, technology and construction included,” it added.

Chelverton Investor Club is part of Chelverton Asset Management, a business founded in 1998. It manages total assets in the region of £160 million.