INVESTOR UPDATES

Prefequity backs TLC Marketing Worldwide

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TLC Marketing Worldwide is the award-winning specialist promotional agency that runs innovative campaigns for global consumer brands.

Headquartered in London and employing 400 people, the company runs over 500 campaigns each year out of its network of 19 offices covering every continent. Campaigns are designed to bring brands “alive” by offering consumer experiences that drive acquisition, retention and loyalty through strategically planned conceptual promotions. Clients include 60 of Fortune’s Top 100 brands. Prefequity has provided a long-term investment to fund the company’s continuing growth.

Theo Dickens, Managing Partner at Prefequity who will join the board, commented: “We are delighted to have added TLC Marketing Worldwide to our portfolio. The company is led by an ambitious management team that has built a robust business enjoying strong relationships with an impressive breadth of global brands. Our investment is confirmation of the continuing demand for capital from high-quality UK businesses that are looking to grow.”

Nick True, Chairman of TLC Marketing Worldwide, added: “We welcome this investment from Prefequity as it gives us a solid base to address the enormous opportunities we are focused on delivering across both new and existing markets as we roll out innovative products and services such as our “Pure Loyalty” solution. We have built a good relationship with the Prefequity team over the course of the transaction and look forward to working with our new partners to achieve our 2020 vision for the company.”

Successful exit for CorpAcq

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Prefequity is pleased to announce the exit of its 2013 investment in CorpAcq, the Manchester-based investment group, via a refinancing.

Headquartered in Altrincham, CorpAcq acquires stable, family-run industrial businesses with good cashflow and asset-backing in sectors such as building products, plant hire and materials handling. Over the 4 years of the investment CorpAcq’s portfolio has grown from 8 to 20 companies while group EBITDA has increased by more than three times over the same period.

Theo Dickens, Managing Partner of Prefequity, commented: “We are delighted with CorpAcq’s performance. The management team has been highly successful in executing its plan of completing value-enhancing acquisitions and driving operational performance to generate exceptional growth. This transaction showcases Prefequity’s philosophy of making investments with strong downside protection coupled with the opportunity to deliver highly attractive returns for its investors”.

Simon Orange, Chairman of CorpAcq, added: “Prefequity offered us a funding solution that was ideal for our needs at the time and have been highly supportive of the business. We have built a strong relationship with the team over the past four years and value their partnership-based approach.”

Prefequity invests in CaviTech Solutions

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Lancashire-based CaviTech Solutions designs and manufactures complex high-precision injection moulds for the personal-care and medical sectors.

Formed in 1955, the company has continually invested in the latest technology and processes to build a strong market position in its chosen sectors. CaviTech’s highly automated manufacturing capability enables it to build repeatable series of interchangeable moulds that are delivered to market-leading customers around the world.

Prefequity has provided a long-term investment to CaviTech to repay its existing bank debt and to buy out minority shareholders.

Theo Dickens, Managing Partner at Prefequity, will join the board of CaviTech. He commented: “We are delighted with our investment in CaviTech. The company is led by a high-quality management team focused on delivering an exciting growth plan. This transaction showcases our philosophy of offering investors strong downside protection, coupled with the opportunity to generate attractive risk-adjusted returns through our equity ownership”.

Chris Smith, MD at CaviTech, added: “The Prefequity team delivered a flexible funding package that closely met our objectives and our timetable. We look forward to working together over the next few years as we continue to grow CaviTech and to take advantage of the significant global market opportunities we have identified.”

Theo Dickens to speak at 2nd Annual LPGP Connect Private Debt Conference

Theo Dickens will be speaking on a panel at the LPGP Connect Private Debt Conference at the Waldorf Hilton, London on 15th March, 2016. The panel will focus on Strategies for Delivering Higher Returns. It will discuss the advantages for investors of targeting niche strategies in areas of the European private debt market that are comparatively underserved.

Prefequity adds to sourcing and investment expertise

We are pleased to announce that Nick Petrusic has joined Prefequity as Senior Partner.

Nick has extensive experience in investing in mid-market companies gained over more than 25 years and is well known in the private equity and leveraged finance industries. He was head of GSC Group’s London office from 2009 (acquired by Black Diamond in 2011) having joined the firm in 2000 as a founding member of its successful European mezzanine business. Prior to GSC, Nick was a director within NatWest Acquisition Finance, a leading finance provider to the UK and European buy-out market.

Nick’s appointment further enhances Prefequity’s strengths in mid-market debt investment and we are delighted to welcome him to the Prefequity team.

Simon Morrell – In Memoriam

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Simon Morrell passed away suddenly on Saturday, 4th April 2015 at the age of 55.

As well as being a valuable part of the Prefequity team, Simon was a well-known member of the European investment management community, having been instrumental in many landmark mezzanine and growth capital transactions in management-owned as well as private equity-backed businesses. After graduating from Corpus Christi College, Oxford, Simon began his career at PwC and then worked at Intermediate Capital Group for 16 years prior to co-founding Prefequity.

He was an enthusiastic golfer and served as Finance Director on the Board of the Sundridge Park Golf Club.

Those who knew him will remember Simon as charismatic and warm, with a knack for incision and a huge ability to inspire confidence in the stakeholders of businesses he invested in.

He is survived by his wife, Fiona, and two daughters, Siena and Liberty.