BoS and Panmure launch PE joint venture

The newly-created private equity firm, Panmure Capital, will target late stage pre-IPO funding opportunities.

Bank of Scotland (BoS) and Panmure Gordon, the UK-listed stockbroker, are launching a private equity investment firm as a joint venture.
Panmure Capital will target companies that are seeking a listing within the next two years. It currently has commitments of £30 million (€43 million; $53 million), which the firm expects to draw down over a three-year period.

There is a funding gap for late stage, pre-IPO companies, that are not being served to the full extent

James Montgomeria, spokesman, Bank of Scotland

James Montgomerie, a spokesman for BoS, told PEO that Richard Wyatt, the executive chairman of Panmure Gordon, had approached the bank with the idea for the joint venture. “There is a funding gap for late stage, pre-IPO companies, that are not being served to the full extent,” he said. “The joint venture will continue as long as it is commercially viable – it’s not going to be a short-term relationship.”
Panmure Gordon and BoS have committed £14.25 million each to the venture. In addition, the new firm’s fund managers, Wyatt and Edward Forwood, have also invested in the venture. Forwood, an experienced private equity professional and the founding chief executive of Kvault Software, will commit £500,000 to the venture. Wyatt will commit £1 million.

Wyatt: approached BoS with idea for joint venture

The managers will have a combined five percent equity stake in the business, while each corporate backer will have a 47.5 percent stake.
To provide initial funds for the venture, Panmure Gordon has placed 4.98 million shares with Bank of Scotland at a price of 220p. This represents 8 percent of the company’s enlarged share capital.