Portfolio: Funds: Current

Hambro Perks Access Fund II

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A venture capital secondaries fund that invests in privately owned, later stage, fast-growing, technology-enabled businesses in the UK and Europe.

Stakes are acquired in between formal funding rounds from motivated sellers at significant discounts of around 30%.

Connection Capital clients were able to gain access via our relationship with the manager, Hambro Perks, and invested £5m in August 2021.

Investment highlights

  • Fund managerHambro Perks
  • StrategyVenture capital secondaries
  • SectorTechnology
  • Target net returnc2.1x plus upside

Fund strategy

The Fund is focused on providing liquidity to motivated sellers between funding rounds. These are typically founders and early investors who wish, or have a need, to realise all or a portion of their holding, ahead of an exit, in a market which is highly illiquid.

The Fund seeks to acquire these stakes at a significant discount to adjacent funding rounds (c30%). These holdings will then be realised at the relevant exit event, or through an earlier placing at an appropriate stage in the growth of the investment, with the return coming from the unwinding of the acquisition discount and value growth in the business.

Target businesses will have strong management and lead investors well-placed to support the growth plans. The Fund aims to provide access to these later stage scaling companies at an attractive point in their growth path, being partially de-risked and with the additional benefit of entry at a considerable discount. 

The Fund Manager: Hambro Perks

Hambro Perks is a London-based, international investment firm established in 2013 by the late Rupert Hambro CBE and Dominic Perks. It is focused on private technology investments.

It partners with founders and entrepreneurs to support technology enabled businesses at all stages of their growth. In the last five years, Hambro Perks has built a portfolio with shareholdings in nearly 100 early and growth stage businesses and has funds and strategies across company-build, primary, and secondary VC.

Why do we like this Alternative Asset Fund?

The fund provides a unique entry point into later stage venture companies with stakes acquired opportunistically and at significant discounts. Here are a few reasons we thought clients would be interested in the Fund. 

  • Hambro Perks is well known to Connection Capital
    It has a strong proprietary network across the European technology VC sector, essential for sourcing these below the radar, small equity stakes.
  • Multiple exit strategies with improved liquidity
    This results in a shorter fund life than is typical for venture, with distributions likely from year three. Most investments will have a three to four year hold period so the majority of the Fund should be realised by the end of year five. A few assets may be a longer hold if the potential money multiple warrants it.
  • HP is often the sole liquidity provider
    It is attractive to motivated sellers with stakes acquired at attractive discounted entry levels, not constrained by pricing of a primary funding round. This provides access to growth companies after the early high-risk stage, at discounted entry prices, and a differentiated exposure to the VC growth companies, diversified by the underlying lead VC investor.

 

Alternative Funds Team

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