VCT News
Copyright Promotions' management acquires equity from VC partner
Beringea generates 40% IRR
12 September 2005 - The senior management of Europe's leading licensing agency, Copyright Promotions Licensing Group (CPLG), announces today that it has acquired the entire equity interest in the company of funds managed by private equity and investment banking firm Beringea. With the disposal, Beringea has achieved a return on capital of nearly 3x and an IRR of 40%.
Three of Beringea's funds - Global Rights Fund II, ProVen VCT and ProVen Growth & Income VCT - financed the MBO of CPLG in 2001, taking a substantial minority equity stake in the group. CPLG has enjoyed excellent progress through its representation of the licensing rights of some of the world's biggest entertainment, media and sports companies including Twentieth Century Fox, Sony, Dreamworks and the Football Association, and well-known properties such as Shrek and Spiderman 2. The transaction values the company at nearly three times the price of the original MBO.
Beringea also introduced current Executive Chairman, Matthew Wheeler, to the company in 2004. Wheeler will continue to lead the business alongside Chief Executive Kirk Bloomgarden. The management now owns 100% of the equity in the company.
Commenting on the deal, Matthew Wheeler said: "Beringea has been a very good partner for us. They enabled the MBO and we are most grateful for their support and guidance over the past four years. We are very pleased to have been able to provide them with a profitable exit at this time. Recent results have put the company in a strong position both financially and strategically and we are now well placed to move forward in the next stage of our development."
Jeff Bocan, Investment Director at Beringea who was also on CPLG's board, added: "We are extremely pleased with the progress made by Copyright Promotions since our initial investment and are delighted with the returns generated by our exit. The management team has performed well and has demonstrated considerable passion and energy in reshaping the business to ensure its continued prosperity. The company is now well positioned to take advantage of future opportunities in a growing sector. This has been a good investment for Beringea and clearly demonstrates the role that venture capital can play in building a successful and sustainable business."
About Beringea
Beringea is an international venture capital firm with offices in London and Detroit. In the UK Beringea manages ProVen VCT, ProVen Health VCT, ProVen Growth & Income VCT and Global Rights Fund II. Beringea launched its first VCT in 1996, making it one of the most experienced VCT managers in the UK. ProVen Growth & Income and ProVen VCT are highest performing VCTs of their launch years, respectively, according to www.taxefficientreview.com. For more information please visit www.provenvcts.co.uk.