Magenta Partners portfolio company Voly announces acquisition of Pinpoint Works

Voly Group has announced its acquisition of interactive worklist management platform Pinpoint Works, further enhancing its end-to-end solution for the financial management of superyachts. 

Founded by a superyacht captain who was frustrated with the inadequacies of basic spreadsheets, the Pinpoint Works platform provides a simple work list solution for an entire supply chain. The programme offers end-to-end transparency and total workflow accuracy, resulting in significant financial and time savings.

Having worked closely with Pinpoint Works for the past 12 months, Voly Group appreciates the enormous value the platform brings to the superyacht industry and will now integrate and develop the platform further under the Voly umbrella. The new integration will benefit captains and owners who are managing new build projects or refits, offering a total solution from initial bidding through to completion. 

The acquisition further demonstrates Voly Group’s commitment to the superyacht industry, creating superior technology to manage all aspects of the business and deliver meaningful, measurable benefit for superyacht owners. 

Voly Group Founder & CEO: Ian Flanagan

“I’m delighted that Pinpoint Works has joined the Voly Group family. Our mutual respect, unified approach, and vision for technology within the marine space will continue to provide the superyacht sector with the cutting-edge tool set that it requires to function effectively. Together with our industry partners, management companies, shipyards and the incredible crew that make it all possible; we will continue to revolutionise the industry. I’d like to thank Pinpoint Works Founders, James Stockdale, and Leslie Gillotte, for supporting the vision and joining the team on this truly exciting journey.  I would also like to thank the team at Magenta Partners who have been instrumental in enabling this to happen. We are already working closely together on the next Voly chapter, please watch this space. These are exciting times in the superyacht world. Voly Group, supported by the superb team of people that work here, intend to keep pushing the boundaries and leading the way.”

Pinpoint Works Founder & Director: James Stockdale and Pinpoint Works Co-Founder & Director: Leslie Gillotte

“James and I, along with the rest of the Pinpoint Works team, are excited to have joined Ian and his team at Voly Group. Watching their business and influence in the industry grow alongside our own, we realized early on that we shared the same approach to our individual solutions: do one thing and do it well. I believe this is what has contributed to both of our successes in the superyacht industry to this point. The enthusiasm both our client bases bring for our products serves as motivation for us to create more value for them by uniting forces. Through this strategic partnership and our shared passion for developing innovative technology, we will grow stronger together by providing truly unique solutions. With the Voly team, we look forward to continuing to provide excellent standards of client support and bringing greater impact through the integration of our platforms for this dynamic industry we serve, and beyond.”

Magenta Partners Managing Partner: Tom Matthews

“Pinpoint Works have created a market leading project management platform with a great client base in the marine industry. Magenta Partners is delighted to be bringing Pinpoint Works under the Voly Group umbrella, further cementing its position as the leading yacht management platform for owners and managers of super yachts.”

About Voly Group

Market leading financial management platform Voly Group aims to simplify accounting, foreign exchange, and payments for the superyacht sector. Offering vision on real-time expenditure, mobile accounting solutions, APA management for charter yachts and fleets, and integrated Voly Prepaid Mastercard® payments, it simplifies and clarifies superyacht expenditure. Led by CEO and founder Ian Flanagan the Voly Group also recently created Voly Music, expanding its platform to service the music industry. 

About Pinpoint Works

Founded by Captain James Stockdale, and his wife Leslie Gillotte, Pinpoint Works offers a simple, interactive worklist management platform. With clients including yacht crew, project managers, shipyards and owner’s representatives, it transforms site plans into a live, interactive work list solution. Pinpoint Works is already used by hundreds of superyachts and maritime businesses globally and aims to continually adapt for its clients following the mantra of “simple but powerful”.

Voly Group announces acquisition of Pinpoint Works   — Voly Group

Magenta Partners portfolio company The North American Guitar (‘TNAG’) has successfully acquired vintage guitar specialist Carter Vintage Guitars (‘CVG’)

TNAG, a portfolio company of scale-up growth investor Magenta Partners, has successfully acquired CVG, one of the world’s leading vintage guitar specialists.

Established in 2012 by Walter and Christie Carter, CVG has achieved strong growth since its inception to become an iconic and market-leading vintage guitar dealer. CVG operates as a hybrid retailer with a globally recognised website and an expansive physical showroom situated in Nashville, TN (aka Music City, USA, an epicentre for all things guitar).

CVG represents TNAG’s second successful acquisition (having also acquired Cotten Music Centre in 2019) and serves to further accelerate TNAG’s digitally led expansion plans in the highly fragmented premium guitar market. This inorganic growth will compound on impressive organic growth to help further establish TNAG as the home of the world’s finest guitars and the business will continue to seek out future acquisition opportunities to accelerate access to collectors that are currently stuck in an underserved and antiquated guitar market.

TNAG’s explosive growth has been driven by its creation of the world’s first global ‘Exchange’ for premium guitars. This gives consumers a unique white glove service to buy and sell pre-owned high-end instruments and will shortly enable users to connect and transact on a C2C basis. Owners will be able to digitise their collections, meet and share knowledge with other enthusiasts, and trade some of the world’s finest guitars on a worldwide basis.

Ben Montague, CEO at TNAG commented: “Partnering with CVG truly is an honour, but it’s also a strategic decision as we are not only bringing together two of the most respected guitar brands but two that are inherently complementary. TNAG has worked over the last 10 years to develop the premium guitar market and to reshape how collectors and players source, play, and eventually, sell high-end instruments. Carter Vintage Guitars has the same philosophy in the vintage world and so this partnership really is about bringing together two trusted brands that will work together to build the future of our wonderful premium guitar market.”

Max Hallam, Investment Director for Magenta Partners, commented: “The Carters have curated a wonderful brand that is notorious around the world for sourcing and representing some of the finest and rarest premium vintage guitars. We are extremely pleased that TNAG has acquired CVG and will continue to work with its founders to further propel TNAG’s position as the go-to place for collectors and enthusiasts to enjoy a digitally led service for buying, playing, loving, selling the very best fretted instruments on the planet.”

TNAG were advised on the transaction by Andrea Perry at Spencer Fane Bone McAllester.

For further details please see:

https://thenorthamericanguitar.com/

https://cartervintage.com/

TNAG

Magenta Partners portfolio company TNAG successfully launches Connoisseur digital app and magazine

https://www.mia.org.uk/2021/04/the-north-american-guitar-to-launch-new-magazine-for-the-high-end-guitar-market-as-it-focuses-on-helping-players-buy-sell-play-and-love/

In April 2021 The North American Guitar (TNAG) launched a new digital application and magazine for the high-end guitar market as it focuses on helping players ‘buy, sell, play and love’.

‘TNAG Connoisseur’ offers readers an exploration of luxury from the worlds of bespoke guitars, luthier-built steel-string instruments, vintage and rare, as well as the very best in lifestyle content.

The digital application and leading issue are now available for download on all app stores. The application (free to download) is a departure from the archaic PDF replica content digital magazine applications offer today. Giving readers the truly immersive digital experience of a native application, the TNAG Connoisseur app showcases the latest issue of the magazine (each issue will cost $6.99 or $29.99 for a 12-month / six-issue subscription) as well as all of the content available from TNAG including news feeds direct from their Nashville showroom, video features and sessions from all their players, as well as all of their Talking Guitar podcasts. A feature-packed content application for lovers of everything high- end guitar—and the true home of the world’s finest guitars and their players.

Connoisseur is the latest product to come from TNAG and marks the next step on their journey to capture the complete high-end guitar playing lifecycle: players can buy their dream guitar from the world’s finest collection at TNAG, sell instruments on their Exchange marketplace, learn to play the guitar with the latest Academy courses, and now enjoy and love their instrument with TNAG Connoisseur.

Leading the launch issue of ‘TNAG Connoisseur’ is the recording-breaking bluesman, and true guitar connoisseur, Joe Bonamassa. Speaking exclusively to TNAG Connoisseur, Bonamassa documents his guitar journey from teen prodigy to guitar hero, as well as tips and tricks for sourcing and buying vintage Les Pauls. Joining Bonamassa in launching TNAG Connoisseur is fellow aficionado, Jason Isbell, who takes us on a vintage voyage through guitar town. Hank Marvin talks about an enduring legacy like no other; Vince Gill opens up about his vintage Martin collection; Carlene Carter talks about carrying the torch for country music’s first family; Larkin Poe speak of their love for roots music; and Molly Tuttle reveals secrets to her clawhammer guitar techniques.

The release of TNAG Connoisseur swiftly follows the launch of TNAG’s recently upgraded website https://thenorthamericanguitar.com/ and issue two of the magazine is due for publication in July.

TNAG

Magenta Partners leads $6 million investment round for home-fitness platform, Motosumo

Danish fit-tech venture Motosumo identified as a “one-of-a-kind prospect” with the offering to lead a new era of home fitness evolution

London-based SME growth investor, Magenta Partners today announced it has led a major Series A funding round for Motosumo, a fast-growing, at-home indoor cycling platform offering live, interactive classes from any bike. Magenta led the funding round with the participation from existing investors.

Magenta Managing Partner Tom Matthews says their extensive evaluation identified Motosumo as a one-of-a-kind prospect in a crowded market. “Our team of experts has appraised numerous software and hardware platforms in connected fitness over the last 18 months. We believe Motosumo is a standout proposition with the ability to lead evolution in the home fitness market. It’s the only platform of its kind that is hardware agnostic, which presents significant opportunities for growth across borders,” said Matthews, whose team at Magenta has extensive background in fitness, including previous investments in LA Fitness, The Gym Group, Pure Gym, and Viva Gym.

Motosumo, a Danish fit-tech company founded in 2015, offers a global schedule of live indoor cycling classes with world-class instructors. Motosumo’s innovative tech means that users can join the platform from home, using any bike and a mobile phone or tablet. Even the most basic setup can be connected to enjoy a fully interactive class.

With subscriptions starting at just $12.99 per month, Motosumo delivers an affordable alternative to the range of expensive market participants that require consumers to purchase equipment and wait weeks for delivery to get started.

“Immediate access, an interactive experience, and global reach are key considerations for growth, and Motosumo has all three,” said Motosumo Co-Founder and CEO Kresten Juel Jensen. “Our platform works with any bike, so the user is not required to invest in new equipment and can immediately access a workout. Motosumo classes feature interactive games with live fitness metrics, and our instructors interact with participants in real time. We’re thrilled to partner with Magenta. Their investment, as well as their strategic vision and support, is going to help fuel our experience and our expansion.”

“Even before the COVID pandemic, consumer demand for at-home workout options was growing. The last year has drastically changed the fitness industry landscape. At-home connected fitness has become a major beneficiary, and Motosumo was already ahead of the curve and uniquely positioned to drive rapid adoption of our home-training solution,” said Juel Jensen.

This round of Series A funding will allow Motosumo to double its roster of instructors across four continents (Europe, North America, Asia and Australia), expand its tech team, and significantly increase its marketing efforts. Magenta usually invests between £5m and £20m in each opportunity. Their investment in Motosumo is the first step in a potential long-term, working partnership.

Magenta Managing Partner Chase Emson already makes Motosumo classes part of his daily at-home workouts: “Motosumo is a fantastic experience. It is the only truly live and interactive proposition for those with an indoor bike at home. Having attended a number of the classes, I can say from personal experience that Motosumo is fun and entertaining – and I’m most excited by the results I’m getting from my workout experience,” said Emson.

Investors in Motosumo from previous rounds include the Danish venture capital fund Promentum Equity Partners, and PreSeed Ventures, one of the largest Danish innovation incubators.

For more information on Motosumo and how to start a 7-day trial, visit www.motosumo.com or download the Motosumo app from the Apple App Store and Google Play.

About Motosumo

Motosumo is a live, interactive platform for at-home cycling classes that works with any stationary bike. The venture was founded by a Denmark-based team of engineers and astrophysicists who tapped the power of smartphone motion sensors to generate live fitness metrics, like cadence, on any bike. They developed an app to make a fun, interactive workout and community experience available to almost anyone. Early on, Motosumo became a popular mainstay in gyms and fitness studios. In response to growing demand for home workout options, Motosumo evolved the platform for the individual user and teamed up with a network of world-class instructors to create a global offering of live, daily classes. Everyone can enjoy the same immersive, interactive fitness experience at home for just $12.99 a month. To turn any bike into a world-class workout experience, visit www.motosumo.com.

About Magenta Partners

Magenta Partners LLP is a UK private equity investment advisor founded in 2008 specializing in entrepreneur-led growth investments. Since inception, Magenta has invested in consumer focused businesses such as Pure Gym, JoJo Maman Bebe, Maker&Son and the North American Guitar Company. A critical element of Magenta’s investment style is an ability to partner with management teams in creating alignment towards a common shared goal. The Magenta funds are backed by successful entrepreneurs and the executive team bring experience managing and growing successful venture-backed businesses themselves. www.magentapartners.com

Promentum Equity Partners

Promentum Equity Partners is a Danish private equity fund established in 2016 as a collaboration between Promentum Capital and Alternative Equity Partners. www.promentumequity.dk

PreSeed Ventures

For more than two decades PreSeed Ventures have scouted, mentored and funded Danish success stories like Vivino, Trustpilot and Lunar. www.preseedventures.dk

Motosumo

Magenta portfolio company Payen ranks #27 in Dun & Bradstreet's top fast-growth tech companies list

https://www.dnb.co.uk/solutions/accelerate-50-awards.html

Dun & Bradstreet have presented the inaugural edition of Accelerate50 2021, recognising the UK’s Top 50 fast-growth technology companies.

Using Dun & Bradstreet’s recognised and trusted data and insights, the publication presents a comparison of financial parameters of companies within their respective sectors. In addition it captures the views of industry veterans on the opportunities, growth drivers and long term-plans of their firms and sectors.

#27: Payen

• 3-year CAGR growth: 80.58%

• Industry: Financial Services

• Co-Founder & CEO: Richard Smith

Launched in 2010, Payen Limited is a technology company enabling global payments. Payen offers direct access to domestic acquiring across payment methods and geographies, including all major credit and debt cards, online banking, and other eWallets via a single, integrated platform with built-in fraud management tools, analytics and reporting features. In conjunction with payment services, Payen offers its customers business bank accounts and forex services.

https://www.dnb.co.uk/solutions/accelerate-50-awards.html

Payen

https://www.payen.com/

Magenta Partners invests in high growth yacht software and payments provider

SME growth investor Magenta Partners has invested in Voly Ltd (‘Voly’), the fast growing, multi asset management and payment solution provider to the yachting, family office and media sectors. 

Founded by former tennis pro Ian Flanagan, Voly offers a comprehensive accounting and treasury management solution with curated ancillary modules, enabling yacht owners, captains, management companies and family offices alike to manage and report a yacht’s activities in real time with limited overhead resource.

Over the last 5 years, Voly has invested significantly in its software and support capabilities which has facilitated c.50% per annum growth (including throughout the pandemic) and the expansion into adjacent verticals of family offices and media.

The investment underlines Magenta’s approach of backing high growth, niche businesses with strong prospects and exceptional management teams. The investment is the sixth of Magenta’s latest fund, which targets equity investments of £5m - £20m. 

Tom Matthews, partner of Magenta, commented: “We are delighted to be investing in Voly. Ian and his dedicated team have built a market leading solution with great growth potential. The yachting industry is large and underpenetrated, and we are equally excited about Voly’s fast start in the conterminous sectors of media and family offices. Further module releases over the coming 12 months will reinforce Voly’s outstanding proposition to these core markets and provide a superb platform for rapid expansion. We will also be on the look out for interesting acquisition opportunities as the business scales.” 

Ian Flanagan, Founder and CEO of Voly, commented: “Magenta’s investment is testament to the amazing growth story of our business over the last 24 months - from industry challenger to clear market leader in yachting, successful entry into the asset management space for the UHNW family office client and the first steps into new verticals.”

“Alongside Magenta and our incoming Chairman, Simon Morse, we have ambitious plans - commencing with several exciting upgrades to our technology alongside a substantial investment in sales and marketing and the opening of several new offices.” 

“I’d like to thank the Voly team for their exceptional commitment and hard work and, as a team, we look forward to this exciting next chapter of growth. “

Magenta were advised by Marc Field at Addleshaw Goddard, and Philip Quigley at Smith and Williamson. Voly were advised by Mike Blood and Emma Hickman at JMW. 

For further details please see: https://www.voly.co.uk/

Voly

Magenta Partners invests in premium guitar specialist The North American Guitar (‘TNAG’)

SME growth investor Magenta Partners has invested in TNAG, a fast growing and disruptive seller of high-end guitars.

TNAG is a leading specialist in premium guitars which was founded in 2010 by entrepreneur Robert Montague and his son, Ben Montague. Huge online growth has led the company to focus on international and digital expansion opportunities in the underserved, fragmented, premium niche of the guitar market. TNAG has established an enviable panel of world class luthiers supplying a unique selection of hand-crafted boutique guitars and has recently established a digital exchange for the trading of pre-owned models. The business is headquartered in the UK but has recently expanded operations by acquiring a global showroom in Nashville, USA.

The investment follows Magenta’s approach of backing high growth, niche challenger businesses with strong prospects and an exceptional core team.  The investment is the fifth of Magenta’s latest fund, which targets equity investments of £5m - £20m.

Tom Matthews, partner of Magenta, commented: “TNAG has an excellent heritage in the world of premium guitars and has successfully transitioned towards a digital led strategy opening up a fragmented global market opportunity to service the entire lifecycle of high-end guitars. We are very excited to be partnering up with such a passionate and knowledgeable management team to help fulfil their mission statement of being the go-to brand for premium guitar collectors and enthusiasts. We look forward to supporting Ben and the team at what we believe to be a real inflection point for future growth.”

Ben Montague, CEO of TNAG, is thrilled to be partnering up with Magenta commenting: “We are incredibly excited that Magenta is providing us with the additional firepower we need to support our growth journey.  We began in 2010 as a little company with big ideas, wanting to create the ultimate customer experience when buying, playing, loving or selling your high-end guitar. It was clear from the get-go that Magenta were the perfect fit for our growth plans, sharing our passion for generating world class content merged with show stopping technology. They truly understand what we are looking to achieve from the outset and appreciate the scale of the opportunity we are targeting.”

Magenta were advised by Marc Field at Addleshaw Goddard, and Philip Quigley at Smith and Williamson.  TNAG were advised by Stuart Mullins at Clarks Legal, Mark Baricos at CBiz and Sharon Bedford at James Cowper Kreston.

For further details please see:

https://thenorthamericanguitar.com

https://www.instagram.com/thenorthamericanguitar/

TNAG

Magenta Partners invests in luxury ethical furniture brand Maker & Son

SME growth investor Magenta Partners has invested in Maker & Son, a fast growing and disruptive furniture and home furnishings brand.

Founded in 2018 by serial entrepreneur Alex Willcock and his son, Felix Conran, Maker & Son is a high end, digitally native, luxury furniture brand whose products are made from 100% natural materials, are sustainably and ethically produced and incredibly comfortable.  With a disruptive model, Maker & Son do not sell through traditional retail stores or partners, instead they bring their locally manufactured products to the customer’s door in unique ‘mobile showrooms’  that make the buying experience highly personal and convenient. Maker & Son currently operate in the UK and Ireland, the USA, Australia and New Zealand with products made locally in each territory.

The investment underlines Magenta’s approach of backing high growth, niche businesses with strong prospects and exceptional management teams.  The investment is the fourth of Magenta’s latest fund, which targets equity investments of £5m - £20m.

Chase Emson, partner of Magenta, commented: “Maker & Son is an excellent business with an enviable culture, and we are very excited to be partnering with such a driven and capable management team.  Maker & Son has proven it can create highly desirable products and deliver exceptional customer service through its innovative business model.  We have an excellent working relationship with Alex and the team and we look forward to being part of the Company’s future over the coming years.”

Alex Willcock, Founder and CEO of Maker & Son, is pleased to welcome Magenta as an investor saying: “We are tremendously excited to be taking on investment from Magenta to accelerate our growth.  From our first interactions they have been consistent and supportive of what we are trying to achieve at Maker & Son, and I believe the chemistry and fit are perfect for us.  It is great to have a professional backer that can help us capitalise on our recent success and help us to grow and develop the business into the future.”

Magenta were advised by Marc Field at Addleshaw Goddard, and Philip Quigley at Smith and Williamson. Maker & Son were advised by Andrew Tzialli at Philip Lee and Meeten Nathwani at Hillier Hopkins.

For further details please see:

https://makerandson.com

https://www.instagram.com/makerandson/

Maker & Son

Magenta portfolio company Payen ranks #32 in the Sunday Times Profit Track 100

https://www.fasttrack.co.uk/league-tables/profit-track-100/league-table/

Founded by chairman Alexander MacAngus, 59, and chief executive Richard Smith, 44, in 2010, this Surrey company spent four years on development before debuting its payment processing platform for online retailers. It also helps clients increase their credit card acceptance rates worldwide, reducing so-called “basket abandonment”. It raised £10m from private equity firm Magenta Partners in 2017. Profits rose to £3.6m last year, with businesses in Canada, Australia and Nigeria now using its platform.

For further details please see:

https://www.fasttrack.co.uk/company_profile/payen-3/

Payen

Viva Gym Group has completed the acquisition of Duet Fit, a chain of 13 gyms in Barcelona

Following on from the earlier acquisition of Fitness Hut, the Duet acquisition strengthens Viva’s position as the leading low-cost gym operator in the Iberian region. By the end of this year, combined group will be operating more than 90 sites across the two countries, with over 320,000 members and more than 1,000 employees. Viva continues to pursue an ambitious growth strategy over the coming years to reinforce its position as the largest and fastest growing gym chain in Iberia.

Magenta portfolio company Payen ranks #22 in the Sunday Times WorldFirst SME Export Track 100

https://www.fasttrack.co.uk/league-tables/sme-export-track-100/league-table/

Founded by chief executive Alexander MacAngus, 58, and chief strategic officer Richard Smith, 43, in 2010, this Guildford firm spent four years on development before debuting its payment processing platform for online retailers. It also helps clients to increase their credit card acceptance rates worldwide, reducing “basket abandonment”. It raised £10m from private equity firm Magenta Partners in 2017. International sales — made up of processing fees — reached £9.2m last year, with businesses in Canada, Australia and Nigeria using its platform.

For further details please see:

https://www.fasttrack.co.uk/company_profile/payen/

Payen

Magenta Partners invests in dynamic travel-tech disruptor Fastpayhotels

SME growth investor, Magenta Partners, has acquired a stake in FastPayHotels (FPH), a fast growing, dynamic rate hotel wholesaler, connecting sources of supply (hotels) with sources of demand (travel agencies and tour operators). FPH represents the third investment from Magenta’s latest fund, which targets equity investments of £5m – £20m in growth businesses.

Founded in 2016 by Alex Gisbert and Elodie Leunen, FPH is a specialist hotel bed wholesaler, differentiating itself through selective hotel rate distribution and high use of technology. FPH commenced trading in 2015 and currently sells hotel rooms in over 78 countries from around 28 source markets. It operates in a $60B global hotel market which is growing at over 6% annually, with the online travel agents growing at over 6% as consumers migrate their booking habits online. Against this backdrop, the company has enjoyed explosive growth.

The investment in FPH underlines Magenta’s approach of backing high growth, niche market leaders, and partnering with driven management teams and founders to accelerate their growth.  Tom Matthews of Magenta Partners has joined the FPH Board, and will work with Magenta’s Entrepreneur’s Club in supporting the company’s growth.

Tom Matthews, partner of Magenta, comments: “We are delighted to have the opportunity to partner with such driven entrepreneurs who have already built a very differentiated business with huge growth opportunities ahead.  We are very much looking forward to working closely with Alex and Elodie and our Entrepreneurs Club to help grow and scale the business over the coming years.”

Alex Gisbert, CEO of FPH comments: “We wanted an investor who valued founder entrepreneurs and appreciated the real life day to day challenges of managing growth. Magenta proved a natural fit with strong sector understanding and deep experience of growing businesses as both investors and entrepreneurs themselves. We are looking forward to the journey together.”

Magenta were advised by Addleshaw Goddard, Broseta, Deloitte and Intuitus.  FPH were advised by Deloitte Legal Spain.

FastPayHotels

Magenta portfolio company TrustpayGlobal ranks #29 in Sunday Times Tech Track 100

https://www.fasttrack.co.uk/company_profile/trustpay-global/

Founded by chief executive Alexander MacAngus, 57, and chief strategic officer Richard Smith, 42, in 2010, TrustpayGlobal spent four years on development before debuting its payment processing platform for online retailers.

The Guildford-based business also helps clients to increase their credit card acceptance rates worldwide, reducing “basket abandonment”. It operates in 12 currencies, with 80% of sales coming from international markets. Sales, which represent processing fees, were £9.8m in the year to March 2018, and it plans to hit £25m in the next three years.

For further details please see:
www.payen.com (formally known as Trustpay Global)

Payen

Magenta and Eaton Gate partner for continued growth

SME growth investor, Magenta Partners (Magenta), has taken a minority stake in Eaton Gate Holdings Limited and Vigilis Holdings Limited (together EGV).

Founded in 2016 by serial entrepreneur Gary Burke, EGV is a managing general underwriter (MGU) specialising in UK mid-market commercial insurance.  Its well-recognised and highly experienced executive team have created an exciting and unique offering akin to a virtual insurer.  It has quickly gained traction in the market and is regularly writing policies in excess of £50,000.

Gary is pleased to welcome Magenta as a co-investor to support EGV’s continued growth.  The investment in EGV underlines Magenta’s approach of backing high growth, niche businesses with strong prospects and exceptional management teams.  The investment is the second of Magenta’s latest fund, which targets equity investments of £5m – £20m.

Magenta has previously invested successfully in another business founded by Gary.  Gary Burke comments: “Given our history and relationship, Magenta were a natural fit when seeking additional funding to support our rapid growth.  Not only have they spent considerable time getting to know the business, but we have already proved that we can work well together to grow a business and capitalise on the opportunities it presents.”

Chase Emson, partner of Magenta, has joined the EGV board and comments: “We are very excited to partner once again with Gary Burke in this exciting new venture.  EGV has already demonstrated an ability to provide a differentiated offering for both brokers and insurers and carve out its own niche based on its exceptional team and distribution networks.  We have an excellent working relationship with Gary and have full confidence in him and his team’s ability to grow and scale the business over the coming years.”

Jonathan Matthews, EGV’s Chief Operating Officer added: “It is great to have a new backer that really understands the uniqueness of EGV’s virtual insurer business model.  By combining market leading technology, in-house specialist MGAs and high levels of service we are able to offer bespoke insurance solutions to brokers and insurers.”

Magenta were advised by Eversheds Sutherland led by Louise Finnie, Smith and Williamson and Intuitus.  EGV were advised by ABG Corporate Finance LLP lead by Eleanor Wilkinson, Macfarlanes led by Justin Hope and Norton Rose Fulbright LLP.

For more information on Magenta please see www.magentapartners.com

For more information on EGV, please see www.egmgu.co.uk and www.vigilis.co.uk

Eaton Gate

Viva Gym acquires Fitness Hut to create Iberian low-cost market leader

Spain’s Viva Gym and Portugal’s Fitness Hut, two of Europe’s leading low-cost gym groups, are joining forces

• Together they will constitute the largest low-cost gym group in Iberia, with almost 200,000 members and revenues of more than €50m

• The deal is being led by Bridges Fund Management, the sustainable and impact investor

• The combined group will focus on driving better access to affordable health and fitness, as a means of improving health outcomes

• Acquisition financing provided by Ares, plus significant follow-on acquisition capability to support the group’s plan to roughly double in size in the next three years

LONDON, 9th JANUARY 2018

Viva Gym (“Viva”), a leading Spanish low-cost gym business, has acquired Fitness Hut, the leading Portuguese low-cost gym business, in a deal led by specialist sustainable and impact investor Bridges Fund Management (“Bridges”). This will create the biggest low-cost fitness group in the Iberian region, with 200,000 members across 48 sites, combined revenues of over €50m, and ambitious growth plans for the next few years.

Bridges acquired a majority stake in Viva in 2015 via its Sustainable Growth Fund III, investing alongside Magenta Partners (“Magenta”), the investment firm that founded Viva in 2011. The acquisition of Fitness Hut has been made possible by a further investment from Fund III and Magenta, plus additional co-investment from Hermes GPE and the two management teams, who remain committed to the business. Fitness Hut’s founding investor Edge Capital and subsequent investor OxyCapital will exit as part of the deal.

Alternative lender Ares Management has provided all acquisition facilities, plus a significant committed follow-on capital capacity to fund further growth.

The health and fitness sector continues to thrive in both Spain and Portugal, and the low-cost segment is the fastest-growing part of those markets. Together, the combined group – which will be led by Viva CEO Juan del Río Nieto and will continue to operate under two separate brands – currently operates 48 sites. With the new facilities in place, management now expects to add another 14 gyms in 2018, with a target of over 90 sites across the group by the end of 2020.

The World Health Organisation has identified physical inactivity as one of the most significant public health risks, contributing to an estimated 3.2 million deaths globally every year. Regular exercise can help tackle this growing problem; but exercise facilities are often inaccessible or unaffordable for those on low incomes.

Bridges has extensive experience in the low-cost gym sector: originally by launching The Gym Group, which pioneered the concept to the UK, and more recently as an investor in both Viva and Impact Fitness, a rapidly-expanding low-cost operator in North America. These companies are helping to bring health and fitness to a new demographic: last year alone, they signed up almost 60,000 people who had never been members of a gym before.

Juan del Río Nieto, CEO of Viva Gym, said:
“Both Viva Gym and Fitness Hut have a clear ‘premium low-cost’ value proposition. They offer affordable and accessible gyms in prime locations, with an upmarket look and feel. The proposition also includes a significant live class offering and a ‘no contract’ policy to ensure member flexibility. These shared values and skills will enable the combined group to be a better, stronger business, which will remain committed to market leadership and innovation.”

James Hurrell, Investment Director at Bridges, said:
“Bridges has known the Fitness Hut team for six years, and we have long admired the business they have built. By bringing these two companies together, we have built a highly experienced and complementary management team and Board. There is a clear opportunity for the two brands to improve their offering by sharing knowledge and best practice, and committed funding is in place to deliver an accelerated growth plan. Given Bridges’ track record of improving accessibility to fitness and driving better health outcomes, we think this is a great opportunity to create another ‘best in class’ operator within the European low-cost gym sector.”

Nick Coutts, Co-Founder of Fitness Hut, said:
“We’ve come to know the Bridges and Viva teams very well over the last few years, so they were an obvious choice of partner as we embark on our next phase of growth. We’re very excited about the opportunity for low-cost fitness in Iberia, and we look forward to working with our new partners to become the undisputed market leader in Spain and Portugal.”

Advisors:

Legal advisor to Viva: Eversheds Sutherland

Debt advisor to Viva: Lincoln International

Commercial and Financial diligence: EY

Corporate finance advisor to Fitness Hut: Clearwater International

Viva Gym

Magenta Partners secures first Fund II investment in TPG

SME growth investor, Magenta Partners, has invested in Trustpay Global (TPG), an online Payment Service Provider (PSP) to enterprise customers in industries with complex international payment requirements. TPG represents the first investment of Magenta’s latest fund, which targets equity investments of £5m – £20m in to growth businesses. The investment follows on fast on the heels of Magenta’s latest exit, Halo Insurance Services, which generated an 11x return.

Founded in 2010 by Sandy MacAngus and Richard Smith, TPG is a specialist digital PSP, providing secure consumer payment processing for medium and large companies across mobile and internet based channels. Combining its proprietary technology platform (PCI DSS accredited) and e-Money Institution status, TPG provides a highly differentiated service offering to online merchants, targeting key areas such as funnel conversion, payment acceptance rates, fraud and charge back rates, and regulatory requirements.  TPG is already processing payments in over 50 countries globally across mainstream and alternative payment methods.

Online payments now represent c.10% of all retail payments annually (c.$2tn), are growing rapidly (c.25% p.a.) and are forecast to double over the next 5 years.  TPG’s historic focus of UK and European merchants who transact internationally is increasingly supplemented via a fast growing footprint in developing countries where internet and banking adoption is high but relatively underserved by local digital payment providers. Against this backdrop, the company has enjoyed significant sales and EBITDA growth.

The investment in TPG underlines Magenta’s approach of backing high growth, niche market leaders, while partnering with driven management teams and founders to accelerate their growth.  Tom Matthews and Chase Emson of Magenta Partners have joined the TPG Board, and will work with Magenta’s Entrepreneur’s Club in supporting the company’s growth in to new merchant sectors and geographies.

Tom Matthews, partner of Magenta, comments: “We are delighted to have the opportunity to partner with such impressive entrepreneurs who have built a very differentiated business.  We are relishing the opportunity of working closely with Sandy and Richard and our Entrepreneurs Club to help grow and scale the business over the coming years.”

Sandy MacAngus, CEO of TPG comments: “We searched for a long time to find an investor that could not only add value, but who appreciated the entrepreneurial nature of our business.  The fact that the Magenta team have founded and managed high growth businesses previously, and have positioned their fund directly at supporting founders and managers, was a critical reason why we chose to partner with.  The support of Magenta will help drive our sector and geographical expansion at an even faster rate, and we are looking forward to the journey together.”

Magenta were advised by Weil Gotshal & Manges, Smith & Williamson and Intuitus.  TPG were advised by Osborne Clarke.

Magenta background:

Magenta Partners was established in 2008 to capitalise on growth investment opportunities in the UK lower mid-market. Magenta is a relatively new manager with a highly entrepreneurial DNA and has invested into 9 different businesses. 5 of these have been exited – the most recent being Halo Insurance which generated Magenta an 11x return.

Magenta is primarily backed by the Singh Family Trust, the family trusts of New Look founder and entrepreneur Tom Singh. The Magenta investment team is augmented by their Entrepreneur’s Club, a group of successful entrepreneurs, most of whom they have backed, and who are used to working closely with Magenta in evaluating, investing in, and managing growth businesses.  This Club consists of Tom Singh (New Look), Steve Parish (TAG, Crystal Palace), Gary Burke (Home & Legacy, iPrism) and Peter Roberts (Luminar, Tulip Inns, Pure Gym).

The Magenta team have also founded and grown their own business, Viva Gym, a market leading low cost gym operator in Spain and South Africa. Bridges Fund Management bought a controlling stake in Viva Gym Spain in 2015.

For more information on Magenta please see www.magentapartners.com

For more information on TPG, please see www.trustpayglobal.com

Trustpay Global

Bridges and Magenta exit insurance business Halo to trade buyer

Bridges and Magenta Partners have sold insurance business Halo to global insurance group Cover-More.

Bridges and Magenta launched Halo in 2009, backing founder and chief executive Ernesto Suarez.

Through its online retail platform iCarhireinsurance.com, and partnerships with other aggregators, Halo helps consumers save money by buying cheaper insurance for rental cars online, rather than paying at the rental desk.

Halo has websites in six different languages and has recently moved into a second product vertical with the launch of InsuretheGap.com, which offers GAP (Guaranteed Asset Protection) insurance policies that are substantially cheaper than those offered by car dealerships.

The company’s EBITDA has increased at a compound annual rate of 145 per cent over the last four years. It sold 325,000 policies last year, while achieving a 3x return on its cost of customer acquisition.

“Halo is a great example of a high-growth consumer champion business: its innovative insurance offering has succeeded in disrupting the marketplace and making car rental insurance more affordable and accessible,” Alison Price, Investment Manager at Bridges Fund Management, said.

The shareholders were advised by Cavendish Corporate Finance and Osborne Clarke.

Halo

Magenta Partners sells its stake in iPrism to Bowmark Capital

– Second exit for Magenta in twelve months –

Funds advised by Magenta Partners (Magenta), the entrepreneurial growth investor, has announced that it has sold its stake in iprism Underwriting Agency Limited (iprism), to Bowmark Capital.

iprism is an insurance intermediary that sells policies to brokers and direct customers on behalf of groups such as AXA, Aviva and LV.  Its online platform generates quotes and policy documentation in real time, maximising the speed and efficiency of price testing and purchase. Magenta acquired a minority stake in iprism in November 2010.

Chase Emson, partner of Magenta Partners, said: “iprism is a great example of a business that has shown consistently strong growth despite challenging economic conditions, and this is largely down to its innovative approach and talented management team.  It recognised how an online capability could revolutionalise the process of buying SME insurance.

“As a minority investor, we have worked alongside the business from the point that it was just starting to break even to now. It has shown a highly impressive rate of growth and has netted a significant return on our investment. We wish the company great success during its next stage of development.”

Magenta launched in January 2008; since then it has advised on investments into eight UK small and medium sized businesses, including childrenswear retailer JoJo Maman Bebe; and has exited three investments, which include Pure Gym, sold to CCMP Capital Advisors in May 2013 generating an IRR of 76%, and independent media design and production agency Tag Worldwide, which sold to Williams Lea in 2011, generating an IRR of 42%. Across its eight portfolio businesses, Magenta has advised on investments totaling £44 million and returned just over £90 million from its first three exits.

Tom Matthews, partner of Magenta comments: “Our investment performance continues to demonstrate that supportive and knowledgeable capital, when partnered with entrepreneurial and talented management teams in growth businesses, can generate top tier returns for investors without the need for excessive leverage. It is an exciting segment of the market in which to operate given the current environment.”

iPrism

CCMP acquires Pure Gym

CCMP Capital Advisers has backed Pure Gym’s management in a secondary buyout of the UK-based company, which previously received funding from Magenta Partners.

The Pure Gym investment is believed to have been made via the GP’s CCMP Capital Investors III fund, which was launched last year and has a target of $3.5bn.  Media reports stated in February this year that the fund was nearing its final close that month.

CCMP typically invests equity tickets of $100-500m (£64-322m) in companies worth between $500m-2bn (£322-1.3bn). The GP’s investment in Pure Gym will be used to roll out a further 40 gyms in the next 12 months.

Pure Gym previously received £6m in funding from Magenta Partners, which was reported to be part of a larger £10m funding round in 2010. Prior to this, Pure Gym’s management invested £3.5m in the company alongside private investors in 2009.

Company

Established in 2008 in Ripon, Yorkshire, Pure Gym runs a chain of gyms that do not require its members to be tied into a contractual commitment. The company’s gyms are open 24 hours a day and offer cheap membership due to the stripped-back facilities, namely the lack of saunas, steam rooms and cafés.

In the year ending February 2013, Pure Gym reportedly recorded turnover of £30.6m and an EBITDA of £8.4m. The company employs around 100 staff and has 45 gyms throughout the UK, which are used by approximately 240,000 customers.

People

Peter Roberts is the CEO and founder of Pure Gym. The company’s executive and non-executive directors all hold shares in Pure Gym. Stephen Murray is the CEO of CCMP while Thomas Walker, managing director at the firm’s London branch, led the deal.

Advisers

Equity – Kirkland & Ellis (Legal).

Company – Liberty Corporate Finance (Corporate finance); Canaccord Genuity (Financial due diligence); Travers Smith (Legal).

Pure Gym

Magenta Partners secures first exit in sale of TAG Worldwide

Funds advised by Magenta Partners, (Magenta), the entrepreneurial growth investor, have secured their first exit in the sale of Tag Worldwide (Tag) to global Business Process Outsourcing company, Williams Lea Group. Tag Worldwide is the largest independent media design and production agency in the world with a strong blue chip customer base including H&M, Coca Cola, RBS, Land Rover, Sony and Unilever.   The sale is the first exit from Magenta’s current portfolio (Magenta launched in January 2008) and represents an IRR of 42 per cent.

Magenta, which specialises in the SME growth investment space, has advised on 8 investments to date, most recently in specialist maternity and childrenswear retailer JoJo Maman Bébé. Magenta’s principal founder investors are the Singh Family Trusts (Tom Singh, founder of New Look, is one of the UK’s leading retail entrepreneurs) and it is now seeking to expand its investor base.

Commenting on the deal, Tom Matthews, a partner at Magenta said: “”Tag is a great business with a great management team. Its market-leading service offering and management’s focused execution of growth opportunities have cemented the business as an out and out market leader in its space, ultimately yielding a strategic premium to shareholder value. We wish them every success in the next phase of their growth.”

The business has grown to over £100m of turnover in 2010 off the back off continued investment in new office openings, expansion in service lines and product development and continued success in winning new blue chip clients.

Steve Parish, who is CEO of Tag and also Chairman of Crystal Palace Football Club comments: “Magenta have a more innovative approach than other PE players we encountered, and struck a chord of partnership from the outset. Against a backdrop of rapid growth, Magenta were able to support us in bringing an increased objectivity to the business and helping define the strategy going forward. We are now well placed to drive the business and continue our geographical expansion in the emerging markets.”

Tag is headquartered in London, has offices in 10 countries and employs 1,100 people. It is a world leader in media design and production and it simplifies the marketing process for its clients by implementing marketing campaigns across multiple delivery channels e.g TV, newspapers, magazines, brochures, direct mail and the internet, in over one hundred different languages.

Advisors:
Financial – RW Baird, David Silver & Anand Baldawa
Vendor due diligence – BDO Stoy Hayward
Legal – Herbert Smith, James MacArthur
Legal (Management) – Rosenblatt Solicitors, Ian Rosenblatt and Nick Foss-Pedersen

Tag Worldwide