Having initially acquired managed information communications and technology services firm Calyx Group in September 2010 using its Fund 1, Better Capital then spit the business into two divisions, Calyx Managed Services (CMS) and m-hance Group. The sale means Better Capital retains the m-hance Group portion. According to a statement, CMS has been sold for £9m – which means a return for Fund 1 of £7.8m after sales costs and management incentives are taken out. Better Capital added that it did not feel it appropriate to apply any further capital in seeking acquisitions to increase the critical mass of CMS in light of it being considered “sub-scale to other operators” in the sector. The investment firm, set up by former Alchemy Partners managing partner Jon Moulton, hit the headlines recently when it was announced portfolio company City Link had failed in its effort to reverse fortunes and was entering administration. Better Capital has been making turnaround investments since 2010 and has counted Readers Digest and Jaeger as portfolio firms. City Link was bought from Rentokil by Better Capital in April 2013. In September 2014 the firm decided to write down its investment by 50 per cent, from £40m to £20m, “such value being determined on an estimated liquidation valuation basis”. Read more about Better Capital:
Another of its investments, Fairline Boats, is said to have faced “difficult market conditions” during 2014, but had the strongest order book in the last two years. A further £4m has been committed to Fairline to fund cash flow requirements, ongoing restructure costs and development of new products. After analysing the level of cash available in its Fund 1, Better Capital has concluded that it is not in a position to make further distribution to shareholders, but will “continue to monitor the position closely”. By Hunter Ruthven
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
