Dec/Jan 2021
PAR EQU ITY
PAR EQUITY IS THE
BRIGHT EIS STAR OF THE NORTH
IFA Magazine's Peter Wilson talks to Andrew Noble, Partner at Par Equity, about why their investment thesis is driving success for investors
P
ar Equity is a leading EIS technology investor focused on the North of the UK, but with a unique business model. It brings together its EIS Fund’s invested money with additional funding from its network of business angels. Par Equity harnesses the expertise, industry knowledge and network of contacts of these business angels to turbo-charge its investments. IFA Magazine spoke to Par Equity Partner Andrew Noble, hot on the heels of their most recent exit, Symphonic Software, which delivered a blended return of 8.3x money to EIS Fund investors across two rounds. Noble started with a quick review of Par Equity’s year. ‘In February, as the pandemic unfolded, there was naturally some uncertainty. But by April it was clear that we were well placed. With a large position in enterprise tech, health tech, and industrial tech, there was, ‘a nimbleness across our portfolio to adapt and take advantage of new opportunities, our outlook was very positive.’ The global pandemic accelerated the digitisation journey for most large enterprises. Noble explained the impact this
10
had on Par Equity, ‘across most of our portfolio we’re seeing accelerated sales cycles, and increased acquisition interest.’ In the quarter to end of September, the average revenues for the companies in the Par EIS Fund increased by 77%. In the same period Par Equity received 8 unsolicited acquisition requests, with 3 more by the middle of October. Symphonic Software itself was sold to a US listed acquirer within a rapid 37 day period, from Letter of Intent to exit on 31 October, Halloween. At 8.3x money it was certainly a treat for investors. One of the attractions of Par Equity is the breadth of fire power it can provide its portfolio companies. Noble explained, ’Our EIS Fund drives our investment activity, but we also have three further sources of capital to support our companies as they grow.’ As well as the EIS Fund, Par Equity also have a network of professional investors, who invest alongside the fund, on identical terms. Then there is the Scottish Investment Bank, with whom Par Equity is a tier 1 co-investment partner, and then earlier this year, Par Equity became a partner of British Business Investments, for its Regional Angel Programme, focusing
I FAmagazine.com
