Universally good

The listed company structure has a bit of a mixed reputation as a private equity vehicle, with most of the more prominent funds preferring to practise their dark arts away from public scrutiny and six-monthly reporting.

One of the benefits of the structure is that it can offer a bit of private equity exposure to smaller punters at levels that wouldn’t get you past the doorman at a conventional fund, and Universal Partners offers it in Europe, with particular focus on the UK.

While the valuation of unlisted companies can be a matter for interpretation, nobody can argue with the proceeds of a realisation, and the consideration received for Universal’s first exit looks promising.

The company first invested in electric motor manufacturer YASA in August 2017, and its sale to MercedesBenz AG hauled in £42.8m, representing three times money invested, and an internal rate of return after transaction fees and carried interest charges of 27.6%. Mercedes’s decision to buy its supplier is a ringing endorsement of its technology, and it’s a tidy exit for Universal.

The rest of its portfolio ranges across sectors, including gems like Propelair, the manufacturer of the world’s least thirsty water-flush toilet. Dentex Healthcare Group is rolling up dental practices at speed, having acquired a further 24 practices since it recommenced acquisitions in November. It has heads of terms with another 16, and Universal says it is delivering consistent growth in profitability.

Further investments are in financial services, payroll services and technology skills, and there’s more to come.