EMV Capital co-leads GBP12m investment round in Cambridge-based Martlet Capital with Saranac Partners
EMV Capital (EMVC) invested in Cambridge-based proposed deeptech early-stage investor Martlet Capital, alongside private office Saranac Partners and other investors.
The investment enables Martlet Capital to complete the acquisition of a portfolio of 50-plus 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 GBP22 million, providing Martlet Capital with significant firepower for further follow on and new investment opportunities.
EMV Capital is making a GBP1 million 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 per cent 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 GBP100,000 in MarQuity and plans to provide a line of credit of up to GBP1 million 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 says: “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.
Marshall says: “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, adds: “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.”