EMV Capital co-leads £12m investment round into Cambridge-based Martlet Capital with Saranac Partners, and establishes a scale-up investment vehicle for the high-tech cluster
- Initial investment includes staged funding for the acquisition by Martlet Capital of Marshall Group’s deeptech investment portfolio of 50+ minority positions
- Total investment in Martlet is targeted at £22m
- Deal also will create a follow-on funding vehicle ‘MarQuity’, to be jointly owned by EMV Capital, Saranac Partners and Martlet Capital, which will provide scale-up capital for the most promising investment opportunities emerging from the Martlet Capital portfolio
16th September 2021 London, UK
EMV Capital (EMVC) has today announced its investment into Cambridge-based proposed Deeptech early-stage investor Martlet Capital, alongside leading private office Saranac Partners and other investors.
The investment enables Martlet Capital to complete the acquisition of a portfolio of 50+ minority positions from Marshall Group, including companies in life science, healthcare, cleantech sustainability, industrial and semi-conductor technology. The total targeted investment for Martlet is at £22m, providing Martlet Capital with significant firepower for further follow on and new investment opportunities.
EMV Capital is making a £1m investment into Martlet Capital, and through its ‘capital light’ approach intends to syndicate a part of its initial investment in Martlet to other investors, in line with its “capital light” approach.
The deal also includes the proposed creation of follow-on funding vehicle ‘MarQuity’, which will be 40% co-owned by EMV Capital, alongside Saranac Partners and Martlet to provide scale up capital for targeted companies from the portfolio. EMV Capital intends to make a seed investment of £100,000 in MarQuity and plans to provide a line of credit of up to £1million to MarQuity, to provide substance and effective response to market opportunities.
The investments are backed by EMV Capital’s parent company AIM-listed NetScientific PLC. NetScientific CEO and EMV Capital MD, Dr.Ilian Iliev played a lead role in the deal structuring and will join the boards of Martlet Capital and MarQuity as Non Executive Director. He said of the deal:
“This investment represents a significant step forward in EMV Capital’s growth path, through an expanded footprint, a new high-quality deal flow channel, increased Capital Under Advisory, and developing further opportunities to deploy our capital-light investment model.
We are excited to work with Martlet Capital and Saranac Partners in building a unique proposition in the world-leading Cambridge cluster. The combination of Martlet’s early-stage investment focus and existing networks; EMV Capital and Saranac Partners’ follow-on investment support through MarQuity; and access to international growth opportunities provides a unique platform to nurture the next set of champions emerging from Cambridge.”
Martlet Capital’s team is led by Robert Marshall as Executive Chairman and Paul Bailey as Managing Director. The firm leverages its existing links, networks, and reputation in the Cambridge technology cluster, as well as a focused approach on executed early-stage investments. Robert Marshall said:
“Martlet is looking to establish itself as an important seed stage investor in the Cambridge deeptech start up ecosystem. With an outstanding team and long-standing relationships with the University of Cambridge and the local technology and investment community we aim to be the seed stage funding partner of choice.
The backing and partnership with EMV and Saranac substantially enhances our ability to invest in more deeptech companies and with the addition of the Saranac/EMV led follow on MarQuity fund giving us the ability to see these companies through inception all the way to exit.”
Investing alongside EMV Capital is Saranac Partners, a private office which aspires to be the partner of choice for individuals, families and private investors. Founded in 2016, Saranac Partners provides advice, access and execution across a broad spectrum of client needs from the simple to the complex. Robert Crowter-Jones of Saranac Partners, added:
“Saranac Partners was established for private investors to gain access to unique investment opportunities and ecosystems. We believe that the Martlet Capital’s team and portfolio creates a very exciting platform within intellectual property emerging from the Cambridge cluster, and will be a natural home for new technologies, entrepreneurs and investors.”
About EMV Capital Ltd
EMV Capital Ltd (EMVC), a fully-owned subsidiary of AIM-listed NetScientific PLC, is a London-based award-winning investor focused on B2B companies in the healthcare, sustainability and industrials sectors with investments in the UK, US and Israel. EMVC’s model is to develop a customized investment strategy for each company, combining its network of investors from Family Offices, Wealth Managers, Institutional VC investors and Corporate VC funds. EMVC recognizes the benefits of corporate engagement for early-stage technology companies, with EMVC’s team having led and structured investments alongside some of the world’s leading corporations. EMV Capital has a growing EIS investment practice, and is an exclusive advisor to the EMVC Evergreen EIS Fund.
EMV Capital Limited is an appointed representative of Sapphire Capital Limited, which is authorised and regulated by the Financial Conduct Authority.
About NetScientific PLC
NetScientific Plc (AIM: NSCI) is a holding company, that invests in, develops, commercialises and realises shareholder value in life sciences/healthcare, sustainability and technology companies, which offer significant growth potential predominately in the UK and USA, as well as globally.
NetScientific delivers shareholder returns through a proactive and hands-on management approach to their portfolio companies; identifying, investing in, and helping to build game-changing companies. The Group targets value inflection points and the release of value through partial or full exits from trade sales, public listings, or equity sales. The Company has a strong transatlantic and growing international presence, providing attractive expansion prospects.
NSCI can deploy a capital-light investment structure; utilising the power of the PLC Brand, and the NetScientific balance sheet to anchor future investments and achieve a multiplier effect by attracting 3rd party investment for the portfolio companies.
NetScientific is headquartered in London, United Kingdom, and was admitted to trading on AIM, a market operated by the London Stock Exchange, in 2013.
About Martlet Capital Ltd
Martlet Capital is an early-stage investor based in Cambridge, which has invested in more than 60 start-ups with high growth potential, since its launch in 2011. The investment company provides patient capital for IP rich, early-stage B2B start-ups, with a primary focus on deep technology and life science companies based in Cambridge. The team is comprised of experienced investors and entrepreneurs. In addition to capital, the team offer value beyond capital through support, experience and a network of contacts. Over the last decade they have achieved several exits from their portfolio, helping companies scale from first-round through to exit from trade sales to global technology companies and IPO’s.
About Saranac Partners
Saranac Partners is a Private Office based in London. We work with families, business owners and private investors across Europe, the Middle East and Asia to deploy and access capital.
Saranac Partners offers a range of services across Strategy, Investments, Financing and Corporate Advisory. We oversee allocation and deployment of capital across private and public markets and manage, advise and oversee client portfolios. We provide access to diverse sources of capital and work with business owners and management teams to provide insight and support for corporate interests. The firm is owned by long-term strategic investors and staff. Saranac Partners Limited is authorised and regulated by the Financial Conduct Authority.
About Marshall of Cambridge (Holdings) Limited.
Founded in 1909, Marshall Group is one the largest employers in Cambridge with an established reputation for engineering excellence and motor retail. The company is privately owned and has a turnover of £2.6bn and over 6,300 employees. Headquartered on a 900-acre site in Cambridge, Marshall has three principal arms to the business: Aerospace and Defence; Property including Cambridge Airport ; and AIM listed Marshall Motor Group Plc.