Matrix Private Equity Partners LLP has sold portfolio company Camwood Limited (Camwood) to its management team. Camwood is an IT services business that specialises in application migration and portfolio management. It is a leader in its field of Application Intelligence.
Four years ago Camwood spun out App-DNA, a software toolset for application management which was then sold to Citrix in October 2011 for USD92 million, generating a 32x return for Matrix advised VCT, The Income & Growth VCT plc. Following that transaction, Matrix retained its original stake in Camwood.
The sale back to management of the remaining Camwood business has generated a 3.8x return for Matrix. The combined exits have delivered total proceeds of over GBP18 million to Matrix advised VCT, The Income & Growth VCT plc over the life of its investment, against original investment costs of GBP1 million.
Guy Blackburn, the Matrix non-executive director of Camwood and App-DNA who managed both investments to exit, says: “Camwood has been an outstanding success. For a company to produce a 32X return for its investors from spinning out and selling another business is remarkable in its own right. For that original company to then add to that success by producing an additional 3.8X return is exceptional. Matrix is privileged to have been part of the great Camwood success story and to have worked with the hugely talented management team who have innovated, driven their business forward and delivered such attractive returns for their investors.”
