News and coverage

EV, through the RisingStars Growth Fund, has completed an investment in Manchester-based Reaxa Limited to support the next stage of the company's commercial expansion programme.

Reaxa is best known for its EnCat™ range of precious metal catalysts and the new funds raised will be targeted to expand commercial resources and bulk-scale production of the EnCat™ polymer (polymer encapsulated catalyst) range, which has been trialed by over 250 customers in the two years since the company was formed.

Precious metal catalysis drives the production process for nearly 30% of all new drugs. By combining cleaner, more cost-effective catalysis with reduced process waste and enhanced metal recovery and recycling, Reaxa's technologies deliver higher process yileds, with lower costs and less environmental impact.

Reaxa's "easier, cleaner, faster" all-scale catalyst and clean-up resin technologies are a twin-track strategy that serves the increasingly tough regulatory, environmental and cost agendas in drug development and commercial scale production.

The company's CEO, Dr Pete Jackson, commented, "Closing this new funding from RisingStars allows scale-up of our catalyst and scavenger products for use in much larger commercial pharma applications".

"We now have secured the support to complete the transition from a catalysis R&D company to a commercial scale operator focused on growth. Increased scale for Reaxa means higher volume process intensification for customers with significant cost and environmental impact benefits".

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EV, the independent North of England based venture capital and private equity fund manager, is delighted to announce it has successfully exited its investment in South Yorkshire based TC Wild Limited, at a multiple of 2.3 times its original investment.

EV, through the Coalfields Enterprise Fund, made its investment of £500,000 to support the management buy-out of the company from Gardner Aerospace Group.

Since the investment in August 2005, the business has invested heavily in plant and equipment and the company has flourished, doubling its turnover to £7.8 million and trebling pre-tax profits.

The sale of the Fund’s shareholding back to management has given the Coalfields Enterprise Fund, which was launched in 2004, its first exit at an IRR in excess of 50%.

Paul Taberner, Investment Director at EV, said, “This transaction is an excellent example of how the change of ownership resulting from a management buy-out can re-invigorate a long established business. As one of the early investments from the Coalfield Enterprise Fund we are pleased to have been able to achieve this level of return within a relatively short period. This demonstrates that it is possible to achieve excellent investment returns at the smaller end of the regional venture capital market”.

Richard Bamford, Executive Chairman of Enterprise Ventures, commented, “This has proved to be an excellent investment for the Fund, and all credit to the TC Wild management team for the company’s success to date”.

Enterprise Ventures, the Northern-based independent venture capital and private equity fund manager, has successfully exited from Netspark Limited for three times its original investment.

The original investment of £500,000 was made in 2001 to fund the management buy-in of this Lancashire-based distributor of furniture and fittings for hairdressing salons. The exit was facilitated by a management buy-out.

Richard Bamford, Executive Chairman of Enterprise Ventures, said, "This has proved to be a most satisfactory investment for our clients. We identified and backed a quality management team from the outset, who consistently delivered by growing the business and its earnings in a relatively mature market".

"This is further demonstration that small buy-outs and buy-ins can be successful and achieve very satisfactory returns".