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Case Study:

Sovereign Capital

sovereign capital

Sovereign Capital

Business Type:
Private Equity

Private equity firm Sovereign Capital has completed its exit from Alcumus, the UK’s market-leading provider of technology-enabled compliance risk management and certification services, with a return on investment of 440%.

Sovereign Capital Partner Matthew Owen, attributes much of the the success of the deal down to the “first class management team” at Alcumus which is led by CEO Martin Smith, whom Mallory Partners placed in the business at the start of their investment.

Mallory Partners director Jeremy Purkis said: “This exit was one of biggest business services deals in the mid-market. Our original brief was challenging: to find somebody who would initially manage what was then a niche Chemical Safety and Environmental consultancy company, but could potentially go on to build Alcumus into the UK’s leading provider of technology-enabled compliance risk management and certification services Although Martin was not from a private equity background, our instincts that he would thrive in a PE deal environment were proven right as he was subsequently promoted from Business Development Director to CEO and has gone on to grow the business delivering a very powerful exit.”

Martin continues as CEO with the new owners of the business. He said: “Having worked in a number of corporate leadership roles in the past I was ready for my first private equity experience. I was motivated by the idea of working in an entrepreneurial environment where I could create shareholder value and build a business of scale. Mallory Partners worked with me in a very intelligent way. Jeremy matched my experience and capabilities to a role that I would not have identified myself as the perfect next move. He supported me throughout the process to make sure the fit was exactly right for the company and the investors.”

The exit caps off a stellar year for Sovereign Capital which won 2015 ‘UK Small Deal of the Year’ category at the Private Equity Awards for its hugely successful exit from Cordium, the leading global financial services compliance and regulatory services provider – the Group CEO of which is another Mallory Partners placement; Michel van Leeuwen.

He said, “Mallory were great to work with – they are experts in matching experienced executives with discerning private equity investors such as Sovereign Capital. Jeremy provided the introduction and the rest, as they say, is history. The introduction led to my becoming Group CEO of a very small consulting company which infused with Sovereigns’ appetite for a global company and their buy and build thesis, suited me perfectly. The ultimate outcome has been exceptional and delivered an ROI of well over 400%.”

Adds Matthew Owen: “On both occasions Mallory delivered high calibre potential Chief Executives for roles in highly complex and niche sub-sectors of the market. Jeremy found candidates who have gone the distance – delivering record exits for Sovereign by creating outstanding and highly attractive businesses.