Strategy

St Helen’s Private Equity Ltd (SHPE) believes there to be an exciting opportunity in private equity and 'smallcap' companies asset classes, provided the selection process is robust and the pricing of deals is sensible.

Notwithstanding this, private equity and 'smallcap' companies are high risk and, combined with market risks, the success of SHPE will be dependent on sourcing and selecting opportunities, and making investment decisions (both acquisitions and sales) with good timing.  Although it is recognised that the high risk nature of private equity and 'smallcap' companies does not rule out the risks of choosing companies that do not succeed or indeed fail completely, it is expected that the gains on the successful investments will substantially outweigh the losses incurred on those investments which do not succeed.

SHPE targets investments which have the potential to show returns in excess of 30% per annum. This includes pre-IPO fundraisings, special situations, and 'smallcap' quoted companies where it believes the pricing represents a good opportunity for a significant uplift in value.

SHPE aims to spread risk by investing in a range of such investments and establishing a portfolio of over 40 investments. It is a generalist fund with no specific sector focus.

The emphasis is on screening opportunities and selecting the best potential companies.

The objective is to hold investments and realise value, usually within a one to two year period, through flotations or trade sales; investments are therefore expected to be relatively fast revolving.

SHPE has access to many of Marechale Capital’s investment opportunities. However in order to spread risk, SHPE aims to invest in a range of investment situations which will come from the Directors’ extensive external contacts. SHPE aims in most cases to be part of a syndicate of investors. Investment tranches are usually within the range of £25,000 to £100,000.