Infrastructure and private equity manager Foresight has acquired the technology ventures division of Downing LLP, including the firm’s management of the Venture Capital Trust and Ventures Enterprise Investment Scheme businesses.
Foresight is expected to acquire the Funds for an initial consideration of £13.6 million.
The funds are deployed across venture capital, AIM-quoted investee companies and a small number of legacy assetbacked debt investments.
Downing is a privately owned, UK-based asset manager and Foresight will acquire three funds with a combined AUM of £275 million.
The acquisition will increase Foresight’s private equity AUM to £1.2 billion.
This is Foresight’s first acquisition post IPO and provides further evidence of Foresight delivering on its stated strategy, which includes increasing AUM by 20-25 percent per annum and growing its Core EBITDA pre-SBP margin to 43 percent over the medium term.
Bernard Fairman, executive chairman of Foresight, commented: “The VCT and EIS businesses, which we are acquiring from Downing, are an excellent strategic fit for Foresight, complementing our existing portfolio and providing exciting diversification opportunities.”
Matt Smith, partner at Foresight, added: “Downing’s Ventures business is complementary to our existing offering and will increase Foresight’s VCT NAV to £542 million. The AIM-quoted investment portfolio provides a platform to potentially expand into a new asset class.
We are excited to be working with the Downing team and believe the combination will help to enhance returns for Downing investors and attract new investors as the Downing portfolios grow over time.”
Jack Eadie, partner at Downing, said: “We are delighted to join Foresight’s award-winning team and benefit from their experience and expertise in delivering VCT and EIS growth, to both portfolio companies and investors. This partnership will create a market leading offering and we are excited about developing it further.”