Investment

LIVINGBRIDGE BACKS COVERSURE INSURANCE SERVICES GROUP IN MANAGEMENT BUYOUT

Coversure Insurance Services Group has been acquired by the current management team as part of a management buyout.

coversure

Tim Wright will join Coversure’s management team as non-executive Chairman as part of the deal. Tim was previously Head of Corporate Risk & Broking at Willis Towers Watson and, before that, Chief Executive of Willis International.

Livingbridge has invested in over 100 growing businesses in the last twenty years and have particular expertise in the insurance sector having previously invested in businesses such as Kingsbridge Risk Solutions. They will work closely with the management team to expand the franchise operation via acquisitions, new locations and the services offered. Further growth will be delivered by extending the product range, accessibility and investment in technology.

CISG comprises of online wholesaler Policyfast, specialist underwriters CUL, software house Datamatters, and insurance broker franchise Coversure. Founded 30 years ago, it has grown to over 90 offices throughout the country via an organic growth strategy that saw Coversure deliver Gross Written Premium (GWP) of £116m, Policyfast deliver GWP of £42m, and CUL deliver GWP of £9m in the financial year ending March 2018, leaving the Group well placed to build on this performance with our backing.

The deal is set to complete later this year, subject to regulatory approval.

Coversure’s CEO Bob Darling said;

“The management buyout is great news for all concerned. It will allow us to invest in the business and offer even more customers and brokers the high standards of service for which the Group has become renowned. Having Livingbridge as our investor and Tim as our Chairman will enable us to explore new opportunities and give us the impetus we need to accelerate our growth, both on and off the high street. All our stakeholders, brokers and staff can look forward to an exciting period of growth and development that I feel will be to the benefit of all.”

Xavier Woodward, who will be joining Coversure as a non-executive Director from Livingbridge, commented;

“We are very pleased to be backing Bob and his team and feel that Tim will be an excellent addition at board level given his deep experience of the sector. CISG is a business that performs a valuable role in helping brokers deliver service excellence to their customers. We are excited about helping CISG, and all the partners they work with, grow in this next stage of development.”

CITIC CAPITAL AND CAIXIN GLOBAL LED CONSORTIUM COMPLETES ACQUISITION OF GLOBAL MARKETING INTELLIGENCE DIVISION

(Hong Kong, 30 April 2018) CITIC Capital Holdings Limited (“CITIC Capital”) announced today that a consortium led by its private equity arm and Caixin Global has successfully completed the acquisition of Global Marketing Intelligence Division (“GMID”) from Euromoney Institutional Investor PLC (LSE:ERM) for an equity value of USD180.5 million.

After the acquisition, CITIC Capital and Caixin Global along with experienced management team from GMID will jointly manage the company’s affairs. GMID is a top-tier international financial information database operator. Its two main units CEIC and EMIS provide global financial information and data from the macro and micro perspectives, respectively, with a focus on key financial and business data for emerging markets.

The products are available in over 15 languages, and are trusted tools used by financial institutions, consultants, multinationals, and researchers worldwide.

Yichen ZHANG, Chairman & CEO of CITIC Capital, said: “We are delighted to join forces with Caixin Global to invest in this valuable and critical resource for emerging markets financial information. We will work together with GMID to expand and deepen its product offering, particularly that which is relevant to China, to better service the needs of its global customer base. We further aim to support management in delivering robust growth through our strong network and resources. This acquisition also represents one pillar in our buyout strategy which is focused on internet-based services businesses.”

This is the fourth carve out deal for CITIC Capital, to help companies restructure and carve out business from parent company to unlock full potential of the acquired assets. CITIC Capital will continue its investment and focus on domestic and overseas buyout opportunities particularly in the consumer and services industry.

About Euromoney Institutional Investor PLC

Euromoney Institutional Investor PLC (www.euromoneyplc.com) is listed on the London Stock Exchange and is a member of the FTSE 250 share index. It is an international business-information group covering asset management, price discovery, data & market intelligence, and banking & finance under brands including Euromoney, Institutional Investor, BCA Research, Ned Davis Research and Metal Bulletin. The group also runs an extensive portfolio of events for the telecoms, financial and commodities markets.

About CEIC and EMIS

CEIC was founded in 1992, and purchased by Euromoney in 2005. It provides a global economic database that covers over 200 countries and 18 macroeconomic sectors. It is one of the most comprehensive macro-economic databases with cutting-edge data accessibility and quality control. EMIS was founded in 1994, and purchased by Euromoney in 1998. As a business information provider for emerging markets, it provides financial institutions, consulting firms, multinationals and researchers with business information and market dynamics on over 125 countries and regions and over 250 industries.

About CITIC Capital

Founded in 2002, CITIC Capital Holdings Limited is an alternative investment management and advisory company. The firm manages over USD22 billion of capital across 100 funds and investment products through its multiple asset class platform covering private equity, real estate, structured investment & finance, and asset management. CITIC Capital has over 150 portfolio companies that span 11 sectors and employ over 820,000 people around the world. CITIC Capital’s private equity arm, CITIC Capital Partners, focused on control buyout opportunities globally, has completed over 50 investments in the past years in China, Japan, U.S. and Europe. The private equity arm currently manages USD4.7 billion of committed capital.

LIVINGBRIDGE INVESTS IN VISUAL SOFTWARE AND HARDWARE PROVIDER DISGUISE

disguise, previously named d3 Technologies, was founded in 2013 by Ash Nehru and his two business partners. It is a leading global provider of live event visualisation solutions, specialising in the provision of the software, hardware and support services for creative production teams to conceive, visualise and deliver high-quality, live productions.

The technology supports many of the world’s leading music touring artists such as U2, Rolling Stones, Beyonce, Lady Gaga and Ed Sheeran; Californian music and arts festival Coachella; several West End and Broadway shows such as Harry Potter; a growing number of Hollywood films and live TV broadcast settings, as well as numerous other corporate and entertainment events. Visit disguise’s website to find out more.

Livingbridge’s investment, made from its Enterprise 2 fund, will enable disguise to increase its market share and grow its global presence. Following its recent opening in Shanghai, disguise has further international offices planned, including Los Angeles in May. This investment will also support the launch of exciting new products, including state-of-the-art camera calibration technology and video formatting hardware.

This is Livingbridge’s latest investment in the software sector, with existing investments including Exclaimer, Red Box Recorders, Kirona and Mobysoft.

disguise

Commenting on the investment, Fernando Kufer CEO at disguise, said:

“We are at a really exciting time in our development as we expand internationally and enable some of the world’s most exciting visual experiences. We have already built a base of high-quality clients, and worked on live events such as The Brits, The Grammy’s, Glastonbury, The Rolling Stones, The National Games of China and many more. This investment from Livingbridge will enable us to take advantage of our growing presence in the industry and take our creative vision to the next level.”

Ash Nehru, Founder, said:
“We’ve always dreamed big and have been lucky enough to work with and for some of the most forward thinking and creative people in our industry. With this new partnership we have the chance to set our sights even higher.”

Matt Upton at Livingbridge said:

“disguise is at the forefront of visual software for live events, and we are delighted to be supporting them in their next stage of development. We have strong experience in investing in software businesses and believe disguise is a great addition to our growing portfolio.”

CITIC CAPITAL COMPLETES ACQUISITION OF LEADING NATURAL BEAUTY AND HOME FRAGRANCE COMPANY – Trilogy International Limited

(Hong Kong, 18 April 2018) CITIC Capital China Partners, the private equity arm of CITIC Capital Holdings Limited (“CITIC Capital”), is pleased to announce that it has successfully completed the acquisition of Trilogy International Limited (“TIL Group”), a leading New Zealand-based company that owns several well-known natural beauty care and home fragrance brands.

Pursuant to the completion, TIL Group has been delisted from New Zealand’s and Australia’s stock exchanges, respectively.

Hanxi ZHAO, Senior Managing Director of CITIC Capital, says: “We are delighted to become the new owner of TIL Group. The company owns remarkable brands in the beauty and lifestyle sectors, such as Trilogy, ECOYA, Goodness, Lanocreme, By Nature, as well as CS&Co, a leading distribution platform for beauty products in the New Zealand market. These brands advocate natural beauty and natural lifestyle, which corresponds to the desire of today’s consumers across the globe.”

”Over the coming months we will be working closely with the talented TIL management team, to map out next steps and strategies, and to continue to grow each of these businesses and enhance the footprints of its brands. We are intrigued by the opportunity ahead of us,” says ZHAO.

TIL Group CEO Angela BUGLASS, says: “This is a significant milestone for our company and I am excited by the change in the ownership and our future prospects. Trilogy is the leading brand in the natural facial skincare space, and its natural yet powerful, effective skincare products are loved by consumers globally. ECOYA brings luxurious home fragrance experiences, with its well-known candles crafted from natural waxes. Lanocreme and By Nature follow ‘Made in New Zealand’ philosophy, and bring skincare products with local features to overseas markets.”

“We will continue to grow our home markets in New Zealand and Australia, as well as to expand the global footprints for our brands. We will also continue to strengthen the CS&Co distribution platform. The company has tremendous growth potential, and also provides attractive career development opportunities for our people as we invest to grow. We are looking forward to taking TIL to the next level with the support of our new shareholder,” says BUGLASS.

The company also announced two important appointments. Felix DANZIGER joins the TIL Board as a Director and Roy BROWN has been appointed as Chief Financial Officer.

About Trilogy International Limited

Trilogy International Limited is a cultivator of essential natural products and home fragrance brands including Trilogy, ECOYA, Goodness, Lanocreme and By Nature in New Zealand, Australia, and around the world. Its subsidiary CS Company Limited (CS&Co) distributes international beauty care and fragrances brands in New Zealand. For more information, please visit http://investors.tilbrands.com

About CITIC Capital

Founded in 2002, CITIC Capital Holdings Limited is an alternative investment management and advisory company. The firm manages over USD22 billion of capital across 100 funds and investment products through its multiple asset class platform covering private equity, real estate, structured investment & finance, and asset management. CITIC Capital has over 130 portfolio companies that span 11 sectors and employ over 820,000 people around the world. CITIC Capital’s private equity arm, CITIC Capital Partners, focused on control buyout opportunities globally, has completed over 50 investments in the past years in China, Japan, U.S. and Europe. The private equity arm currently manages USD4.7 billion of committed capital

LIVINGBRIDGE INVESTS IN NATIONWIDE PRIVATE CARE PROVIDER

Founded in 1989 by Mary Lee and now led by her two sons Tim and Ben Lee, Helping Hands provides a wide range of tailored home care services, ranging from its hourly visiting service, to 24-hour live-in care. It also offers a nurse-led clinical care service which enables individuals with complex conditions to be supported at home. The business is headquartered in Alcester Warwickshire and operates from over 60 branches across the UK.

The provision of high-quality service to its customers and a rewarding working environment for its carers are central priorities for Helping Hands. The company was delighted to recently be ranked as #22 in the Glassdoor ‘2018 Best Places to Work – Employee’s Choice’ Awards, the only healthcare business in the top 50.

Livingbridge’s minority investment will enable Helping Hands to continue to develop its national presence, whilst maintaining the strong family leadership culture that has underpinned the company’s success to date.

Commenting on the investment, Tim Lee, CEO said:

“Our ambition at Helping Hands is to be the brand which is synonymous with quality home care in this country. In Livingbridge we believe we have found a partner who understands our business, shares our ambition and who will help us reach our objective.”

Liz Jones at Livingbridge, said:

“The Lee family has built a fantastic business dedicated to the provision of high quality care. We are delighted to partner with this experienced team to support their continued aspirations in the UK homecare market.”

CITIC CAPITAL AND BARING PRIVATE EQUITY ASIA COMPLETE ACQUISITION OF WALL STREET ENGLISH

(Hong Kong, 15 March 2018) CITIC Capital Holdings Limited (“CITIC Capital”) and Baring Private Equity Asia (“BPEA”) today announced that their affiliated private equity funds have completed the acquisition of Wall Street English (“WSE”), the world’s leading provider of English language training to adults, from Pearson Plc (“Pearson”).

WSE is recognized as a leading blended learning platform that provides a differentiated learning experience to its students. WSE’s success is underpinned by a strong brand, and a track record of growth and innovation over its 46-year history.

In 2016 the business served 180,000 learners through 70 corporate owned centers in China, 9 corporate owned centers in Italy and 321 franchised centers across 28 territories. It has over 3 million graduates to date.

About CITIC Capital

Founded in 2002, CITIC Capital Holdings Limited is an alternative investment management and advisory company. The firm manages over USD22 billion of capital across 100 funds and investment products. The firm manages investments through its multiple asset class platform covering private equity, real estate, structured investment & finance, and asset management. CITIC Capital has over 130 portfolio companies that span 11 sectors and employ over 820,000 people around the world. CITIC Capital’s private equity arm, CITIC Capital Partners, focused on control buyout opportunities globally, has completed over 60 investments in the past years in China, Japan, U.S. and Europe. The private equity arm currently manages USD4.7 billion of committed capital. For more information, please visit www.citiccapital.com.

About Baring Private Equity Asia

Baring Private Equity Asia (BPEA) is one of the largest and most established private alternative investment firms in Asia, with a total committed capital of over USD11 billion. The firm runs a pan-Asian investment program, sponsoring buyouts and providing growth capital to companies for expansion or acquisitions, as well as a private credit and a pan-Asian real estate private equity investment program. The firm has been investing in Asia since its formation in 1997 and has over 150 employees located across offices in Hong Kong, China, India, Indonesia, Japan and Singapore. BPEA currently has over 30 portfolio companies active across Asia with a total of 150,000 employees and sales of 2 approximately USD28 billion in 2016.

LIVINGBRIDGE INVESTS IN SPECIALIST CLOUD SERVICES MARKETPLACE GIACOM

Giacom offers a one-stop platform for all of the cloud software, infrastructure and IT support services that an ITC might require to transition an SME client into a public or private cloud environment and then manage them on an ongoing basis. Underpinned by a Microsoft 2-Tier Cloud Solution Provider licence, Giacom has rapidly become the vendor of choice for over 4,000 ITCs enabling the business to service a fast-growing addressable market estimated to be worth c£2.2bn.

Established in Hull in 1999, the investment from Livingbridge facilitates a management buyout of the business by Giacom Chief Executive Mike Wardell and his team from the founder, Nick Marshall. LDC who backed the business in 2016 are exiting and will be reinvesting alongside Livingbridge for a minority stake to support Giacom’s ongoing growth strategy. Yorkshire Bank have worked with Giacom since 2016 and continue to support the business following the new investment. Graham Gilbert will remain as Chairman.

Giacom plans to build on the strong momentum it has generated to date by continuing to expand its network with ITCs, cross-selling more products and services across the marketplace and through strategic M&A.

This is the latest investment from the Livingbridge 6 fund and the fourth Livingbridge investment in TMT in recent months.

Commenting on the investment, Mike Wardell, Chief Executive said:

“Following a year of rapid growth which saw us double our revenues, we believe that now is the right time to secure new financial backing and accelerate our growth plans. Livingbridge’s track record of supporting other high growth businesses such as ours, combined with their experience of investing in the tech sector, means they are uniquely positioned to work with us and I am excited about our future partnership with them. I would like to thank LDC for their backing and support to date and am looking forward to the next phase of our growth strategy.”

Commenting on the investment, Matthew Caffrey, Livingbridge, said:

“We are very excited to be working with Mike and the team during the next phase of Giacom’s growth. The business is extremely well positioned to capitalise on a significant market opportunity underpinned by SMEs increasingly migrating their applications and infrastructure into the cloud. Giacom’s marketplace platform is well placed to continue to disrupt the market and drive growth.

CITIC CAPITAL IN ADVANCED DISCUSSIONS TO ACQUIRE GLOBAL PREMIUM COSMETICS PACKAGING PROVIDER AXILONE

CITIC Capital China Partners III, L.P., a buyout fund managed by the private equity arm of CITIC Capital Holdings Limited (“CITIC Capital”), is pleased to announce it has entered into advanced discussions with funds managed by Oaktree Capital Management, L.P. (“Oaktree”) on 31 October 2017, with a view to acquire Axilone, a global provider of premium packaging solutions to the beauty care industry.

The transaction is subject to legal and regulatory approvals and could complete before the end of 2017.

Headquartered in Paris and part of the Ileos Group, Axilone is a global leading provider of primary plastic and metal packaging solutions for premium lipstick, fragrance, and skincare sectors. Axilone serves leading beauty and personal care companies around the globe, and has subsidiaries in France, Spain, U.S. and China. It also has manufacturing facilities in France, Spain and China.

Axilone Benefiting from the rapid growing trend in the global beauty and personal care industry, Axilone has demonstrated strong growth in the past few years, establishing itself as a leading player especially in the premium lipstick space.

Hanxi ZHAO, Senior Managing Director of CITIC Capital, commented: “We are very excited about this opportunity. Axilone is a leading player in the beauty care packaging sector, serving leading customers globally with unparalleled product quality and service. We are committed to working with the talented management team to continue to tap into the enormous potential in the space, and take their success to the next level globally.”

Jean ROLLIER, Managing Director of Oaktree and President and CEO of Ileos Group, said: “Axilone has enjoyed strong growth during Oaktree’s holding period, and we believe the company is well positioned to continue its trajectory to enhance its leadership in the beauty care packaging category.”

About Axilone

Axilone designs and manufactures premium plastic and metal packaging for leading global cosmetics, perfume and beauty care brands and customers. Headquartered in Paris, the Company was founded in 1971 and has over 2,000 employees in France, Spain, U.S. and China.

INNOVA CAPITAL TO ACQUIRE 75% STAKE IN INELO AND OCRK

Innova Capital, a leading Central European private equity fund, is to acquire a 75% stake in Inelo and OCRK, a leading technology-based player active in drivers’ work time management systems for the transportation industry. As a result of this transaction, the fund will also gain exposure to the attractive telematics space.

On 20 October 2017, funds managed by Innova Capital signed an agreement to purchase 75% of shares in Inelo Sp. z o. o. and OCRK Sp. z o. o. S.k. The founders of Inelo and OCRK, Jakub Gieruszczak and Mirosław Stocerz respectively, will partially roll-over their holdings into minority shareholders. This has been the eleventh “Founder Succession” transaction, in which Innova has supported and partnered with Polish entrepreneurs.

“In line with our investment strategy, we are searching for companies with a strong market position which will allow us to capture premium returns. Inelo and OCRK are European leaders, with unique know-how in the area of analysis and drivers’ work time management. They also hold an attractive position in the fast growing telematics market. We are proud to become a shareholder in a Group with such potential!” – said Magdalena Magnuszewska, Partner at Innova Capital, who is leading the investment.

“We strongly believe that based on its solid foundations, know-how, and technology, the Group will continue its dynamic growth, both domestically and in the global market” – said Magdalena Magnuszewska.

Inelo and OCRK provide comprehensive solutions for the transportation industry, mainly in the area of work time management and telematics. The Group’s strong market position is reflected in the fast growth of the business (~30% historical revenues CAGR). It benefits to a large extent from subscription-based revenues – while, thanks to its state-of-the-art technology, the business is highly scalable. At present, the software developed by Inelo is used by control authorities across 13 EU countries. The Group has also built a particularly strong position in the area of WTM and telematics for small and medium-sized fleets.

“Over 15 years on the market, we have become a leader in the drivers’ work time management area, both for transport companies and control authorities across Europe. We hope that thanks to the involvement of this new investor we will be able to accelerate growth and gain new business partners across multiple international markets” – said Jakub Gieruszczak.

In 2016, the total revenues of the Group totalled PLN 58 million, with over 10,000 clients and 3,500 employees of the control authorities using its software. Both companies’ representatives advise the European Commission and conduct training sessions for transportation inspection authorities, police forces, and other control authorities. The Group employs over 450 employees.

ocrk About OCRK: Ogólnopolskie Centrum Rozliczania Kierowców is a leading player handling drivers’ work time management, operating on the Polish market since 2002. It employs over 260 experts and specialists in labour and transportation law of Poland and the EU, with a vast experience in the transportation & logistic industries. OCRK, constantly monitors the legal and economic situation across the transportation industry in Europe, in order to provide the highest quality and most comprehensive services.

About Inelo: Inelo offers top quality software for analysis and management of drivers’ work time and is a developer of telematics solutions offered to the transportation industry. It also renders training and advisory services for the companies operating in the transportation industry. The company employs over 190 people in four areas of its operations: Sales, development/IT, Services and Administration.

LIVINGBRIDGE INVEST IN DISRUPTIVE SOFTWARE PROVIDER MOBYSOFT

Livingbridge today announces its investment in Manchester-based Mobysoft, a market leader in predictive software for social housing providers.

Mobysoft’s core product, RentSense, is a Software as a Service (SaaS) based predictive analytics service which delivers accurate and prioritised workload to social landlords. Using a range of data, RentSense’s algorithms present social housing officers accurate workload information, saving them time, improving efficiency in rent collection and enabling social landlords to mitigate welfare reform and reduce arrears by tens of millions of pounds a year. Mobysoft’s software is used daily by 91 social housing operators managing c.1 million properties, almost a fifth of the sector’s 5.2 million UK based properties.

Growing rent arrears is an issue for the UK’s 1,650 social housing providers with the largest 100 alone facing more than £700m of gross arrears in 2016. Rent reductions and welfare reform including Universal Credit, are adding to cost pressures in the sector and driving the need for greater efficiency.

Founded in 2003 by Derek Steele, Mobysoft has a team of 32, headquartered in Manchester. Livingbridge’s investment will enable Mobysoft to grow its UK social housing market share, increase investment in people and extend the use of predictive analytics into other areas of social housing.

Livingbridge has a strong track record in supporting software businesses and the investment in Mobysoft follows previous investments in Exclaimer, CSC, Eque2, Scriptswitch and Kirona.

Derek Steele, founder and CEO of Mobysoft, said:

“We are delighted to be working with Livingbridge. Mobysoft has grown rapidly over the last few years, as more landlords chose to deploy RentSense. This investment will enable us to bring to market other complementary software solutions, based on predictive analytics, that can help social landlords deliver further significant efficiencies. Livingbridge has strong experience in helping businesses like Mobysoft and I look forward to working with them to take us to the next stage of growth.”

Nick Holder at Livingbridge, said:

“Having known Derek and his team for a number of years now, we are delighted to partner with them. Mobysoft already has a strong market position and great growth potential, in a sector Livingbridge knows well. With the compelling combination of sector-leading software, an entrepreneurial management team and the capital to pursue its growth ambitions, this is an incredibly exciting opportunity.”

As part of the investment Ken Briddon has been appointed as chairman at Mobysoft. Ken has worked for IT and software businesses for over 40 years, including heading up PLCs. Ken has over 16 years’ experience as the chairman or NED of private equity backed software and services businesses, successfully advising and steering them through the transition to deliver further growth and profits.

The deal was led for Livingbridge by Nick Holder, Charlie Ross and Pete Clarke out of the Manchester office.