MTI Partners and VCF Partners, both UK-based, high-technology focused investors, have successfully completed a 5-year involvement with Advanced Composites Group Holdings Ltd (ACG), an international supplier of high-performance advanced composites.
Following the £44.25 million trade sale of ACG to Umeco Plc, MTI realised a 6-fold gain on an original investment of £2.5 million in 1999. VCF's investment of £1.6 million, also made in 1999, will be realised at £10 million.
According to MTI chief executive Ernie Richardson, the exit has “materially enhanced the performance of MTI’s third fund”, MT3, which raised £30 million in 1998.
In an interview with PrivateEquityOnline, Richardson was upbeat after securing MTI’s first major realisation since March 2002. Describing the sale of ACG as symptomatic of the improvement in the investment climate, he welcomed the exit as a reward for “MTI’s sustained investment activity through tough times”.
MTI is currently investing from MT4, a £104 million vehicle, which at the end of 2003 was 60 percent committed. Drawing on continued optimism about the market place, MTI is currently talking to existing investors and canvassing their views about their appetite for raising new funds.
In separate news, MTI also announced the appointment today of Don Cruickshank as non-executive director and chairman of the board of directors of Formscape, a documentation software solutions provider.