Leading Generalist VCT Manager, Matrix Private Equity Partners has sold its investment in Original Additions, the market leading beauty accessories business which sells eyelash collections designed by Cheryl Cole and Girls Aloud, that it first backed for The Income & Growth VCT in 2004.
The sale netted 4.2 times the original GBP1 million invested, achieving a profit over the life of the investment of GBP3.2 million for the VCT, representing a gain equivalent to 8% of the VCT’s current NAV. The sale of the investment has no significant impact on the VCT’s latest announced NAV per share.
Original Additions, which sells eyelash collections designed by Cheryl Cole and Girls Aloud, alongside ranges inspired by ParisHilton and Sex and the City, has a presence in over 30 international markets. Its principal brands, Elegant Touch and Eylure, are amongst the leading nail care and eyelash brands in Europe. Original Additions has been an excellent growth story, more than doubling annual sales to over GBP30 million and emerging as the clear market leader in the UK nail and eyelash retail category. It has traded exceptionally well through the downturn and is continuing its impressive growth story via entry into both the US and Chinese markets where significant opportunities exist.
Mark Wignall (pictured), Lead Manager of the Matrix VCTs, says: “The environment is positive for smaller company investing. Lack of availability of bank finance has stimulated the demand for our equity investment and there is also no shortage of financial and trade buyers interested in buying our portfolio companies. This profitable VCT deal highlights a small company that’s grown, but stayed a beauty!”.
Matrix recently closed its latest VCT fundraising at GBP16.2 million, one of the largest Generalist VCT fundraisings of the last tax year. It expects to launch a further VCT fundraising later this year.