Exits abound for BGF
BGF, the UK’s most active growth economy investor, has experienced an active quarter of exit and investment activity in Q1 of 2021.
A total of eight exits were completed, generating significant returns for all shareholders. In total, BGF returned £107 million from the £45 million invested across the eight businesses. The exits generated an average MM of 2.4x and average IRR 33%.
Andy Gregory, Chief Investment Officer at BGF, said: “BGF’s positive exit run has marked a busy start to the year and is fantastic news for all involved. Exits were completed in a variety of sectors, from healthcare to technology, and took place across BGF’s network of offices, from Surrey to Northumberland. We have also been very active with new investments and in Q1 have invested more than £200m in 20 new investee companies as well as follow-on funding into 21 portfolio businesses. We’re delighted to be playing a part in driving the UK’s growth economy and with more activity in the pipeline, we’ll be announcing further equity partnerships as well as exits well into 2021”.
Deals in Q1 included the exit of BGF’s first investment in the life sciences space, after Arcinova, the Alnwick-based pharmaceutical firm, which BGF has backed since 2018, was acquired by drug development and manufacturing accelerator, Quotient Sciences.
There was a flurry of activity in the tech sector, following the acquisition of Olive Communications, the Buckinghamshire-based managed cloud communications provider, by Onecom, while BGF-backed Vysiion Group, a communications infrastructure and outsourced IT service provider, was also acquired by Exponential-e, a cloud, network and unified communications company.
Other successful exits included the sale of Setfords, a leading tech-enabled legal services provider, to private equity firm, Phoenix Equity Partners, while Chase Distillery, the owner of Chase GB Gin and the award-winning Chase Original Potato Vodka, was acquired by Diageo.
Andy added: “It’s hugely promising that there continues to be activity and liquidity in the market for high-potential investment opportunities – from both entrepreneurs pursuing growth as well as trade and private equity buyers. Exits in the first quarter of 2021 have generated a high return on BGF’s capital and delivered significant value for all shareholders.”
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