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Chelverton launches private investor club to invest in private UK companies

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Chelverton Asset Management is looking to exploit a gap in the market with a new style of private investor club – The Chelverton Investor Club – which is targeting the more sophisticated investor, and will make direct investments in private UK companies.

 
The club will feed off the firm’s strong pedigree as a specialist investor in quoted and unquoted UK small companies, and will provide members with a number of investment opportunities and with the vast majority of traditional high street clearing banks still not lending – deliver a much needed new source of funding for SME firms.
 
David Horner (pictured), founder and managing director at Chelverton, says: “We have invested more than GBP45m for private investors in some 13 unquoted and privately owned SMEs over the past 8 years, and the schemes and allowances available from the government to support smaller companies have never been more generous. 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.”
 
By pooling their funds, club members will be able to make longer, more meaningful investments.  Members can invest up to GBP1m across a range of compelling small company opportunities, with a minimum investment of GBP25,000 in any one company. The club will invest up to GBP3m per company, with a typical enterprise value of between GBP0.5m and GBP5m.
 
“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.” says 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.”
 
Chelverton will invest in companies with stable business models, run by strong management teams, and which operate in sectors the firm knows and trusts. All investments made through the club will be managed by Chelverton’s expert team, who will monitor the progress of each company and report back to investors on a regular basis.
 
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, but 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.  Neither will the firm present members with third party or consortium transactions.  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.  All club investments will be vetted, approved and managed by Chelverton’s senior team – and will be structured to generate the highest possible returns and use tax-efficient schemes wherever possible.

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