The acquisition of a venture capital firm which was established more than 30 years ago and manages a number of prominent funds has been named as the Deal of the Month for April.
Midven, which has been snapped up by Future Planet Capital (FPC), was originally set up by six Midlands-based entrepreneurs before going through a management buyout in 2007 when the current investment team acquired the business from the founders.
The firm operates from offices in Birmingham, London and Oxfordshire, and invests on both a regional and national basis through a growing portfolio of funds.
The deal will enable FPC to grow its global innovation network, which includes Berkeley, Cambridge, Harvard, MIT and Oxford, by combining them with Midven’s access to top-ranked UK Government funded scientific research.
FPC is built to invest in growth companies from the world’s top universities and has a track record of scalig university spin-outs into nascent global players, demonstrated in its backing of 23andMe, Congenica and recently Vaccitech.
Midven, which is supported by blue chip investors including the British Business Bank and European Investment Bank, manages the UK Innovation and Science Seed Fund (UKI2S) and the £35m MEIF West Midlands Growth Fund, part of the British Business Bank’s £250m Midlands Engine Investment Fund.
At the time of the deal, Andrew Muir, a Midven director and investment director and fund principle for UKI2S, said: “FPC’s connections to leading universities around the world will enable us to connect and support the UK’s top scientific innovators to benchmark and nurture the best of British talent.”
Midven chief executive Tony Stott added: “Midven has a highly successful track record of investing government money through both UKI2S and its Midlands Engine fund. Future Planet’s relationships with global institutional investors should greatly assist all of Midven’s ambitious portfolio companies.”
Douglas Hansen-Luke, FPC executive chairman, said: “Midven’s exceptional 30-year track record, its strong capital base and the UKI2S Fund’s close relationship with some of Britain’s top research establishments will offer our investors, stakeholders and our portfolio companies greater opportunities.
“By incorporating Midven, Future Planet Capital will become an important player in the UK’s impact and university venture industry, with more reach, more investors and more capital to invest in companies working to tackle global challenges.”
Gary Davie of Legal Clarity provided legal advice to the Midven shareholders. Andrew Carpenter of DWF provided legal advice to FPC.