Background
As evidenced by the British Venture Capital Association Private Equity and Venture Capital Performance Measurement Survey 2010, private equity has consistently outperformed most other asset classes such as quoted equities and commercial property over the medium and long term.
The report also shows that private equity funds raised and invested following previous downturns in years 1991 – 1994 and 2001 – 2003, have produced outstanding returns for investors.
However, private equity continues to be dominated by institutional investors. The reality is that for most individuals, investing in private equity means choosing from a variety of Venture Capital Trusts or buying shares in a quoted private equity investment trust. In both cases, investors have no control over how, when or where their money is subsequently invested.
Connection Capital, on the other hand, provides its clients with the opportunity to build a self selected portfolio of individual investments in well established growing private companies.
We find the opportunities, negotiate the terms, manage the due diligence process and prepare all of the legal documentation on behalf of our clients. The decision to invest in a particular company, or not, is entirely down to each individual client; each time they do invest they acquire a direct equity stake in an individual business, not units in a fund.
Connection Capital looks to back only the strongest management teams who we believe are capable of delivering the best investment returns for our clients. We typically invest £1m – £7m of equity in companies seeking growth capital, replacement capital or funding for a management buy-out. Every investment we arrange on behalf of our clients is managed and monitored with regular investment reviews from completion through to exit.
We have a thorough understanding and experience of a wide range of investment vehicles often favoured by private investors including UK and offshore corporate entities, limited partnerships, trusts and pension schemes such as SIPPs and SSASs.