It’s been a busy period of investing for Panoramic, in 2017 we completed three investments across a range of sectors and transactions types:
• July 2017: Development capital into Quill Content, a content creation technology business
• October 2017: Employee buy-out of specialist laser systems distributor Photonic Solutions.
• November 2017: Management Buy-In of specialty chemicals manufacturers Majestic Polymers and DSA Chemicals.
The investment mix was a good illustration of the diverse transaction types that we undertake and the broad range of sectors we are interested in. Common themes amongst these investments were excellent management teams, growing markets and niche products.
Quill Content is a high growth, technology focused business which required development capital to support expansion as a result of increasing customer demand. The deal was a co-investment with venture capitalists Smedvig Capital who also co-invest alongside us on Captify. Quill has an excellent management team and an envious reputation in its industry for revolutionising the method and speed at which content can be produced.
An increasing trend we are experiencing are opportunities marketed as ‘trade sales’ that could be better suited to a private equity supported buy-out. The Employee Buyout of Photonic Solutions was a good example of this trend. The transaction proved successful in providing the vendors with immediate liquidity and an exit from the business whilst enabling the next generation of management and employees to own and take the business forward, which they relished. There was also a clear intention to leave the business in the right hands.
The Management Buy-In of Majestic Polymers and DSA Chemicals was the combination of a long-established family owned business looking for retirement options and a dynamic Buy-In team of industry specialists looking to invest in this space. A range of funding options was considered for the businesses. Here, our approachable and professional style, innovative structuring and deal deliverability made Panoramic the chosen party.
Our objective when structuring transactions is to provide bespoke funding packages that are best suited to management teams and the companies they run. We pride ourselves on being straightforward to work with before, during and post investment. The new investments take the number of portfolio businesses in Fund II to five, approximately a third of the total number of investments planned for the fund. We anticipate continued momentum in 2018 with a buoyant pipeline of opportunities in the first quarter of the year as we continue to invest Fund II.