We’re often approached by investors looking for a more bespoke and personal approach to investing in private companies. These discerning clients seek commercially compelling opportunities, offering good, solid returns, with the benefit of a tax efficient structure.

We provide our Members with access to a selection of handpicked investment opportunities, allowing them to create a self-selected private equity portfolio with ease. Members benefit from our proven approach to selecting high quality unquoted investments that are most likely to deliver a good, well-structured return on their investment.

David HornerManaging director of Chelverton Asset Management

History

Chelverton’s funds under management are more than £400m, including £50m worth of investments in unquoted companies.

Chelverton Investor Club is part of Chelverton Asset Management  (‘CAM’), which was established in 1998 as a specialist investor in quoted and unquoted UK Small Companies.  As well as managing funds of over £350 million, CAM runs three industry appraised funds and has invested some £50m in a range of privately owned, small and medium-sized enterprises (SMEs).

CAM’s unquoted investment team has developed the Club to offer discerning investors a simple and discrete route to investing directly in private UK companies, using its strong pedigree in managing the acquisition of, and investment in, unquoted SMEs.  This is founded on years of extensive experience structuring bespoke investments for a range of exacting clients, including a large family office (Portchester Equity Limited), an AIM traded holding company (CEPS plc) and a group of individual, private investors looking to protect and grow their wealth.

At Chelverton we believe that making a direct equity investment doesn’t have to be a risky, complex endeavour.  We only pursue companies that present stable busines models, are backed by the strongest Management Teams, and operate in sectors we know and trust.

Approach

Our approach allows Members to create their own private equity portfolio with ease.

A discerning investment

It is extremely time consuming and often impractical to build a private equity portfolio; however, by joining the Club the hard work will be done for you. Our team has a proven approach to selecting high quality, unquoted investments.

The approach is meticulous yet simple – whilst we look at a range of investment opportunities, we will only select stable, SME businesses with strong, ambitious Management Teams that are most likely to deliver a good return for investors. In this vein, we introduce our Members to existing, profitable and cash generative companies and occasionally start-ups if they pose an interesting and low risk investment. These companies typically seek investment of between £0.5m and £3m across a range of transaction structures to achieve sound growth targets. Only opportunities which present a solid business model, in sectors we truly believe in, make the cut.

Unlike other private equity providers in the Small Companies sector, we don’t invest in property, funds of funds, or exclusively in start-ups.  Each deal is sourced through our extensive network of brokers and industry contacts and, in the first instance, is completely exclusive to Club Members and their advisors.

Chelverton leads the entire investment process, from researching and vetting every opportunity, to managing the investment and the eventual exit of investors. The decision to invest in any company we present is entirely at the investor’s own discretion, based on the particular sectors they wish to focus on. In this way, Club Members build a self-selected portfolio of investments in established, growing UK SMEs.

Investor returns

All Club investments are targeted to achieve annual pre-tax returns of 20% – 25% plus and structured to use tax efficient schemes, where possible. Mechanisms for tax efficiency include the Enterprise Investment Scheme (EIS) and Business Property Relief, which offer the following benefits:

EIS relief

  • An Income Tax refund of 30% of the amount invested against Income Tax liabilities.
  • Capital Gains which are free from tax.
  • The removal of the investment from the investor’s estate and 40% Inheritance Tax Relief (IHT) after a qualifying period.

Business Property relief comprises

  • Exemption of equity investments which qualify for business property relief from 40% Inheritance Tax (IHT) after a qualifying period of two years.

The sources of funding for our target investee companies, with enterprise value of between £1m and £5m, have reduced significantly during the recession.  This, we believe, provides excellent and highly competitive investment opportunities, which have long been overlooked by other private company equity providers. All our investors have a medium-term focus and commit to each investment for a minimum of three to five years, based on an entry level investment of £25,000.

Who is the Club for?

We have developed the Club exclusively for high net worth and sophisticated investors, with the ability to reduce systematic risk through investing in a broad portfolio.

Together, our Members share an active interest in the UK Small Companies sector and have strong commercial acumen.  These investors are looking for a more involved investment, where they can meet investee companies and network with fellow investors.

 

Opportunities

We focus exclusively on UK SMEs that are most likely to deliver a return for investors.

Investment types sought

At Chelverton we believe that making a direct equity investment doesn’t have to be a risky, complex endeavour.  We only pursue companies that present stable businesses models, are backed by the strongest Management Teams, and operate in sectors we know and trust.

We focus on a smaller number of fully appraised investments in management owned SME businesses.  These companies are typically looking to raise Development and Replacement Capital, or are undergoing Management Buyouts (MBOs), Management Buy-ins (MBIs), or Buy-in Management Buyouts (BIMBOs).

Unlike other private equity providers in the Small Companies sector, we don’t invest in property, funds of funds, or exclusively in start-ups. Investee companies are always in lower risk sectors where the value of the product or service is relatively low, but the added value element is high. Typically, the sectors we consider include manufacturing, professional services, healthcare and construction.

Why SMEs?

There is significant investment value in companies with an Enterprise Value of between £0.5m-£3m, because the equity levels required are beyond most individuals or personal loans, whilst at the same time being too small for banks and most Private Equity providers.

This, we believe, provides excellent and highly competitive investment opportunities which have long been overlooked by other private company equity providers, as well as providing a new source of funding for UK SMEs.

How we work

howwework

Chelverton credentials

Chelverton Investor Club is part of Chelverton Asset Management  (‘CAM’), which was established in 1998 as a specialist investor in quoted and unquoted UK Small Companies.  As well as managing funds of more than £150 million, CAM runs three industry appraised funds and has invested some £45m in a range of privately owned, small and medium-sized enterprises (SMEs).

CAM’s unquoted investment team has a strong pedigree in managing the acquisition of, and investment in, unquoted SMEs.  This is founded on years of extensive experience structuring bespoke investments for a range of exacting clients, including a large family office (Portchester Equity Limited), an AIM traded holding company (CEPS plc) and a group of individual, private investors looking to protect and grow their wealth.

Investor returns

All Club investments are targeted to achieve annual pre-tax returns of 10% – 15% and structured to use tax efficient schemes, where possible. Mechanisms for tax efficiency include the Enterprise Investment Scheme (EIS) and Business Property relief.

People

All Club investments are vetted, approved and managed by our senior team.
  • David Horner

    David has 30 years’ experience in corporate finance assignments, identifying, structuring and managing investments as well as purchasing and managing private equity, specialist listed and AIM portfolios.

    A qualified chartered accountant, he has held senior positions in Touche Ross & Co, 3i Corporate Finance and Strand Partners Limited, with numerous public and private company directorships.

    Specialist Areas: Sourcing, valuing, purchasing and managing private equity in the UK Small Companies Sector.
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  • David Hart

    David has more than 30 years’ experience in a variety of senior finance roles. He holds an MBA, is a qualified chartered accountant and is a member of the Institute of Taxation.

    He has worked with a number of well-known companies, including United Biscuits, Findus, Travis Perkins and Alliance Unichem

    Specialist Areas: Assisting companies to implement major change programmes, including the rationalisation of their systems and structure to deliver improvements. Working with cash constrained businesses and supporting re-financing.
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  • Vivien Langford

    Vivien has 25 years’ experience in senior finance roles, predominantly in service sector companies. She is a qualified chartered accountant and has held Board positions in public listed group companies with diverse subsidiaries, including Shandwick International, Parallel Media Group International and The Argyll Consultancies.
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  • Richard Bucknell

    Richard is a highly experienced Private Equity investment professional who has led well over 20 investments into smaller companies since 1998. In most cases Richard has gone on to represent investor interests on the Boards of these companies. He has helped to shape the strategic development of these companies over time, through to managing the realisation process on behalf of investors.

    Prior to joining Chelverton, Richard held a number of senior investment management positions at firms including Barclays Ventures, ISIS Equity Partners and Catapult Venture Managers.
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  • David Johnson

    Consultant

    David has worked in equity investments for over thirty years, starting as a Fund Manager in the City before moving to Stockbroking where he has held senior management positions at Investec Investment Bank and Panmure Gordon & co. As well as advising investors, David has led the marketing of numerous Corporate deals, including fundraisings and M&A transactions
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Membership

A private Investor Club for high net worth professionals and entrepreneurs.

We offer a comprehensive membership package for investors, as well as for their IFAs and other professional advisors.

membership highlights

  • Exclusive access to up to ten Chelverton appraised investment opportunities annually, with a unique focus on the Small Companies sector.
  • The opportunity to diversify investment portfolios, with targeted annual pre-tax returns of around 15%.
  • EIS and IHT tax benefits, where relevant.
  • Member events and the opportunity to network with like-minded investors, meet investee companies, and hear interesting keynote speakers.
  • Six monthly reporting after investments have been made, as well as pre due-diligence and due-diligence reports before you commit to making an investment.
  • Website Member log-in Clubhouse area with access to investment opportunities, reports and performance updates, future Club events and market insights.
  • Competitive fee structure.

Our application process pdf

Our membership options

  • Investor membership

    Diversify your investments and create a personal private equity portfolio with ease, choosing from a range of Chelverton appraised investments.

    We handle the entire process for you; from sourcing and managing your investments, to updating you with regular portfolio reviews, investment reports and market insights. There are also numerous opportunities to meet investee companies and other like-minded investors at exclusive Member events throughout the year.

    Become a member
  • Advisory membership

    Gain exclusive access to a range of Chelverton appraised investment opportunities to create private equity portfolios with ease.

    Our secure website Member log-in Clubhouse area allows IFAs to review client portfolios and investment performance reports, as well as the latest market trends and investment opportunities. Receive the same benefits as an Investor Member, with the added opportunity to extend Club privileges to any clients who choose to make an investment with us.

    There is no charge to be an Advisory Member but a small charge is made to attend Club events.

    Become a member
  • Professional membership

    Benefit from exclusive networking opportunities with private investors, leading financial advisors, and other professional firms with an interest in the Small Companies sector.

    As well as attending Member events, Professional Members receive regular commentary from our senior team on the latest Small Company market trends, which may also be of interest to their clients.

    There is no charge to be a Professional Member but a small charge is made to attend Club events.

    Become a member

Contact

To become a Member, please get in touch with one of our team who will talk you through the process.

get in touch

To become a Club Member, discuss a business that is looking for funding or simply ask a question, please contact us using the below form.

Our office

Visit Us

Chelverton Investment Club
11 Laura Place
Bath
BA2 4BL
UK

Contact Us

T: 01225 483 030