Maven leads the way in North East investment

Maven
www.mavencp.com
LinkedIn: Maven Capital Partners

 

Maven is one of the country’s leading private equity firms and its eight-strong North East team is helping shape the future of the region with nearly £100 million worth of funding.

The Glasgow-headquartered company, which has offices in Newcastle, Durham and Middlesbrough, has, for nearly a decade, invested close to £70 million, with two substantial funding programmes: the EU- backed North East Development Capital Fund and Business Durham’s Finance Durham Fund.

In addition, Maven, which has a long track record of supporting growth capital, management buyouts, equity value release and acquisition financing, is now managing part of the Government’s Northern Powerhouse Investment Fund, which could bring an additional £50 million to the region.

Maven has been assisting UK investors since its formation 16 years ago, and in its eight years in the North East has expanded from two staff and a base in Newcastle’s Grey Street to eight dedicated employees and three offices.

The team includes partner Michael Vassallo and investment manager Dr Michael Dickens – the firm’s original North East duo – who are joined by senior investment manager David Nixon; portfolio manager Rob Jones; investment associate Lucas Holmes; marketing associate Emma Neal; and investment manager Rebecca MacDermid.

An additional staff member is set to join shortly.

South Shields-born Michael returned to the North East to lead the branch, and is proud of the impact Maven is making with its investments.

He says: “I’ve always had it in my mind that I’ll feel we’ve made a real impact when we get to £100 million invested from client funds in the North East.

“And it is crucial we do so in a way that has made substantial returns for investors while creating sustainable jobs in the region.

“That’s the milestone we’re looking to get to, but it definitely won’t be the end of it.

“We’ll probably get there in the next two years, and there’s still plenty to do after that.”

As a member of Maven’s national investment committee, Michael is on hand to quickly support businesses already based in the North East, as well as attracting new ones to the area.

Speaking at its offices in Business Durham’s Salvus House, based at Aykley Heads on the outskirts of Durham City, Michael says the hands-on approach – with direct involvement from staff based locally – sets Maven apart from other private equity firms.

He says: “It’s still important to meet face-to-face in investing.

“You’re more effective when you’ve got local people working with local businesses.

“We’re developing expertise here, certainly in software, sciences, manufacturing and engineering, and we understand the specific challenges companies face in the North East.

“We’ve created more than 1000 good jobs in the kind of companies you’d want to work for, which are overseen by inspirational leaders.”

He adds: “I was privileged to work on the stock market.

“During that time, I got to sit across from plc chief executives and really exceptional business people on a weekly basis, and I learned so much from them.

“It’s still the same now.

“I sit with an entrepreneur who has the enthusiasm, drive and energy – they’re a different beast to most people – to help them.

“The other benefit, though, which you don’talways get from the stock market, is that you’re creating jobs in the North East, in the place where you live.

“When you get that real entrepreneur, and you look at the numbers and growth opportunities, and they tick all the boxes, that’s when you get really excited.

“Getting to be around these people, to work with them and assist them, is great.

“It’s the most exciting part of the job.”

After spells with Merrill Lynch and Ernst and Young, Michael joined the investment banking arm of Brewin Dolphin, where he worked with Sage and Reg Vardy and was heavily involved in the IPO of Vertu Motors, now one of the region’s largest companies.

He joined Maven in 2017 after a period with FW Capital, and has now been involved in more than 100 deals.

He says: “It’s going really well, and the office has been a big success.

“We’ve invested more than £30 million from the North East Development Capital Fund, with some notable exits and more in the pipeline.

“We manage the Finance Durham Fund, which is a £20 million fund set up by Business Durham.

“The aim is to raise the profile of Durham as somewhere to do business and also provide funding for existing and exciting high-growth businesses in the county to give the region’s economy a boost.”

He adds: “It’s an evergreen fund, so we can re-invest money forever and, as long as there are profits, there is always a surplus for the next deal.

“We’ve also recently completed the first year of the Northern Powerhouse Investment Fund, adding exciting new investees like Tiba Tempeh and Kani Payments.”

Among the successful investments, Michael cites one of the first deals with Newcastle-based app developer Hedgehog Lab – “which made a very healthy profit” – and the sale of Intelligence Fusion, a global security and intelligence firm that Maven took from a two-person start-up to US private equity.

It is also working with Gateshead and Tanfield Lea-based iPac Packaging Solutions, Seaham’s Power Roll and Dyer Engineering, which has sites in Annfield Plain and Harelaw, in County Durham.

Michael says: “These businesses have grown a lot.

“And if you ask the people who run them, they are ambassadors for Maven, who say we are a genuine part of their journey.”