geared - Foresight Group

FORESIGHT PRIVATE EQUITY

Geared for Success
Why Foresight?
Foresight Group is an alternative asset manager with a
strong 25 year track record in private equity
investment strategies.
The group has over 200 years of collective investment
experience and offers entrepreneurial managers
capital and hands-on expertise to create long-term
value and generate higher returns for shareholders.
The private equity team specialises in providing
between £1 million and £5 million of equity finance in
MBOs, BIMBOs and growth capital for smaller UK
companies in transactions with an enterprise value of
up to £20 million.
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The team has a flexible approach to creating the right
structure for each opportunity and seeks to invest in
robust and profitable businesses with strong,
experienced management teams.
Foresight’s current unquoted portfolio comprises more
than 60 companies spanning a wide range of sectors
including environmental, business services, media,
leisure & consumer, healthcare and specialist
manufacturing.
We are committed to this part of the market and
expect to continue to be one of the most active
investors in this area.
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FOR SUCCESS
Investment Criteria
Foresight Group focuses on transactions valued at up to £20
million across a wide range of industry sectors in the UK.
We look for high quality management teams with a
demonstrable track record of revenue and profit generation, a
well formulated strategy and the drive and expertise to grow
their company. Some of our best investments have been led by
managers who have successfully developed or maintained
market-leading positions in growing or consolidating niche
markets.
The majority of our investments are in established, profitable
companies, although some of them are still at a relatively early
stage of their development. We are hands-on investors and we
have generated value for our shareholders by identifying
improvement and turnaround potential.
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We typically invest between £1 million and £5 million of equity in
an individual transaction but will adapt our criteria where there
is significant potential for value growth.
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Transaction Types
Foresight Group invests in established companies with a
strong track record. Our aim is to align ourselves with
high quality management in pursuit of generating value
for the business, the management and investors.
We view investing as a partnership and always seek to
put in place funding structures that will provide strong
incentives to the management team and enable them to
invest in the expansion of their business.
We supply growing businesses with development and
acquisition funding, as well as backing leveraged MBOs,
spin-outs and buy-and-build strategies.
At Foresight, we understand the challenges of building a
business and specialise in providing equity that enables
founding partners and managers to realise a proportion
of their shareholding, whilst retaining a stake in their
business.
Foresight has a successful track record in acquiring,
developing and exiting unquoted companies and we
ensure that each of our investee companies has access
to a dedicated investment manager who can leverage
Foresight's resources in support of achieving the
business plan.
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•MBO
• BIMBO
• GROWTH CAPITAL
• CASH OUT
Investment Style
The investment process at Foresight is underpinned by a
pragmatic investment strategy, based on clear criteria.
This, combined with a transparent and decisive approach,
allows us to move very quickly when we find the right
opportunity.

Recent Investments
MBOs BIMBOs Growth Capital
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Total Committed/Invested:
£3.25 million
Type:
Growth Capital
Date Completed:
January 2009
Sector:
Leisure
Website:
www.futsaluk.net
www.youtube.com/FutsalUK
Deal Contact:
Chris Price
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Deal History
@Futsal Ltd is a facilities management
company that operates sports arenas for
Futsal, a form of small-sided football
which is currently one of the fastest
growing indoor sports in the world. Futsal
is played by an estimated 30 million
people globally and is the only small-sided
football format to be officially recognised
by UEFA and FIFA.
The sport is also gaining recognition
amongst major sports brands and Nike
has already agreed to an exclusive deal
with @Futsal to sell clothing in its arenas.
Investment Opportunity
Between the four Foresight VCTs, £3.25
million of equity capital was committed to
support @Futsal’s expansion plans. The
investment reunites Foresight with the
former management team of Covion, a
facilities management business backed by
Foresight which was sold to Balfour Beatty
in 2007 for £33 million.
Frank Rodriguez, @Futsal’s Managing
Director, is an FA and UEFA qualified
football coach and an FA qualified Futsal
coach. David Steventon, also a co-founder
of Covion, has joined as Non-Executive
Chairman alongside Non-Executive
Director Graeme Dell, the former England
Futsal Manager.
Company Strategy
Following the opening of the company’s
first arena in Swindon in January 2009,
Foresight’s backing enables @Futsal to
target the roll out of up to 30 Futsal
arenas in the UK over a four-year period.
Each @Futsal arena will have multiple
pitches, alongside café, bar and retail
facilities.
Chris Price - “@Futsal has given Foresight
the opportunity to back a hugely
successful team for the second time as
they look to disrupt a rapidly growing
market. Our most important investment
criteria is people and this is why we
couldn’t turn down @Futsal.”

“
Case Study
@FUTSAL
Having worked with Foresight before, we knew what to expect
and we weren’t disappointed! Foresight understood the
concept quickly, agreed terms and got the deal done promptly
and efficiently. We have always been impressed with the
professional yet entrepreneurial and flexible approach
demonstrated by the Foresight team.
Managing Director Frank Rodriguez
”
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Total Committed/Invested:
£3.75 million
Type:
BIMBO
Date Completed:
February 2009
Sector:
Software
Website:
www.autologic-diagnos.co.uk
Deal Contact:
Chris Price
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Deal History
Founded in 1999, Diagnos Holdings
develops and sells sophisticated
automotive diagnostic software and
hardware that enables independent
mechanics, dealerships and garages to
service and repair vehicles.
As cars have become increasingly
sophisticated and more reliant on
electronic systems, mechanics need to be
able to communicate with on-board
electronics to diagnose and fix faults,
requiring a diagnostic tool.
Diagnos’ products are sold throughout the
UK (which accounts for the core of its
business), Europe, and the US. Diagnos
supplies its ‘Autologic’ product to wellknown
car brands including Land Rover,
BMW, Mercedes, Jaguar, VAG (VW, Audi,
Skoda) and Porsche.
Investment Opportunity
The four Foresight VCTs have committed
£3.75 million of equity, to buy out three of
the four founders of the business.
The deal was led by Technical Director Ian
Jones who has been joined by MD Peter
Toland, responsible for major international
sales growth at competitor, Launch Group.
Kevin Finn, founder and Managing
Director of National Service Networks, has
joined as Non-Executive Chairman.
Company Strategy
With Foresight’s backing, Diagnos is able
to continue to expand the range of cars its
tools can cover, launch new product lines
and increase sales through national
chains and international distributors.
Chris Price - “The automotive aftermarket
is going through a period of major
upheaval and Diagnos is extremely well
placed with a market-leading technical
solution to take advantage of this
opportunity. We believe that the new
management team now in place has all
the skills necessary to drive Diagnos
forward successfully.”

“
Case Study
DIAGNOS HOLDINGS
We were introduced to Foresight after an aborted
experience with another private equity house. They were
clear from the outset what they required to complete the
deal and took a commercial view on issues. Foresight did
what they said they would, when they said they would.
Kevin Finn, Chairman
”
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Total Committed/Invested:
£2 million
Type:
MBO
Date Completed:
February 2009
Sector:
Business Services
Website:
www.ica.ltd.uk
Deal Contact:
Sonia Powar
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Deal History
Founded in 1993, ICA is a leading
document management solutions
provider, servicing SMEs in the South East
of England. Its core business is as a
reseller and service provider for Ricoh and
Toshiba office printing equipment, both to
the commercial and public sectors.
Investment Opportunity
Foresight has committed £2 million of
equity capital for a significant minority
stake, to support the management buyout
of ICA. The investment will enable the
development of ICA’s sales-orientated
growth strategy.
Sonia Powar of Foresight sits on the
company’s board, and Andy Nash, a
seasoned private equity investor with
more than 20 years’ experience across a
broad range of sectors, including eleven
MBO/MBI transactions, is Non-Executive
Chairman.
Company Strategy
Under the new management team, ICA
will seek to significantly enhance its sales
and marketing activities to drive the
acquisition of new customers and
maximise service revenues to consolidate
its strong market position.
Sonia Powar - “We were particularly
attracted to a strong management team
with the vision to take forward a business
with an exceptionally robust customer
base. Businesses are increasingly cost
conscious and ICA can deliver a high
quality product and create cost savings – a
perfect formula!”

“
Case Study
ICA
Foresight played a key role in bringing this transaction
together. They successfully raised bank debt in the
current climate and delivered on the terms they
promised from the outset. This marks them out as a
strong partner for teams looking for reliable investors
to help them achieve their ambitions.
Andy Nash, Chairman
”
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Total Committed/Invested:
£2.5 million
Returns:
4.4x
Type:
MBO
Date Completed:
May 2005
Date Realised:
October 2007
Sector:
Support services
Website:
www.covion.co.uk
Deal Contact:
Donald Maclennan
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Deal History
Founded in 2000 by David Steventon and
Frank Rodriguez, Covion provides facilities
management services to private sector
clients in the office and industrial sectors.
The core proposition is the provision of
total facilities management or Facilities
Infrastructure Services as Covion has
labelled them.
Investment Opportunity
Foresight invested £2.5 million in Covion
in 2005 as part of an £8.4 million
fundraising to support an MBO of the
company from the original business angel
backers. Recognising that they were
dealing with an excellent management
team, Foresight aimed to give the
executives freedom to execute their
business plan whilst maintaining regular
contact through board and other
meetings. Covion’s business prospered,
attracting several new high profile
customers and significantly increasing
turnover.
Exit
Covion was acquired by Balfour Beatty for
£33 million in October 2007, generating a
return of 4.4 times the original investment
for the Foresight VCTs.

“
Case Study
COVION
Our VCs were brilliant. They left us to get on with running the business,
but they were always there to give us the benefit of their experience when
we needed it. Donald contributed significantly when we were going
through the sale process and his attention to detail helped us to make
sure that we went to market with an excellent Information Memorandum.
David Steventon, Chairman of Covion until its sale to Balfour Beatty
”
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Total Committed/Invested:
£3 million
Type:
MBO
Date Completed:
September 2007
Sector:
Technology Software & Services
Website:
www.datapath.co.uk
Deal Contact:
Donald Maclennan
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Deal History
Founded in 1982 by Steve De’Ath and Tony
Jones, Datapath is a leading supplier of
graphics cards and other products used
mainly to control large screen displays,
known as “videowalls.” More than 50% of
all videowalls installed worldwide use
Datapath equipment.
Investment Opportunity
In September 2007, Foresight invested £3
million as part of a £12 million MBO of
Datapath, allowing the founder
shareholders to realise value for some of
their shareholding. Datapath’s revenues
and operating profits have increased by
around 30% over the last two years,
leaving it well positioned to build on its
market-leading position.
The Datapath investment is a good
example of how Foresight works with
management teams in order to see
through a transaction by introducing key
individuals from its network and helping
management teams to develop their
strategy. In the case of Datapath,
Foresight introduced Simon Hunt, an
accomplished private equity investor in his
own right, as an investing chairman.
Foresight also identified other individuals
within its network who were able to
provide the company with specific insight
into the markets and distribution channels
central to Datapath’s success and further
guide the company’s business planning.

“
Case Study
DATAPATH
I was invited to join the board of Datapath when Foresight invested in
the company in 2007. Donald Maclennan of Foresight was also
appointed to the board, which quickly transitioned to a group that is
fully able to represent the interests of shareholders and management
in a responsive, interactive way. Foresight has achieved a good
balance between themselves as financial investors and other
investors and has at all times been ready to facilitate the
development of the company’s technology and business. All points
arising have been dealt with speedily and without bureaucratic
interference. I would have no hesitation in recommending Foresight
as a partner to any rapidly expanding, technology-based company.
Simon Hunt, Chairman, Datapath
”
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The Team
Donald Maclennan
Partner
Direct Line: 01732 471 806
Donald joined Foresight as a partner in April 2001
and is a chartered accountant with more than 30
years’ venture capital experience. He has worked
with 3i, Gartmore, NatWest Equity Partners (now
Bridgepoint Capital) and Close Ventures (now Albion
Ventures).
Donald sits on the board of Aquasium Technology,
TFC Europe and Datapath.
Sonia Powar
Investment Director
Direct Line: 01732 471 853
Sonia joined Foresight in November 2008. She is a
chartered accountant and has spent the last 9 years
working in private equity at 3i, firstly in the
Maidstone office and then moving to the Buyout
Team in London. She has worked across a wide
range of sectors and transactions and her focus is
on growing the buyout business within Foresight.
Sonia sits on the boards of Global Immersion and ICA.
Chris Price
Investment Manager
Direct Line: 01732 471 817
Chris joined Foresight in April 2007. He previously
worked at ICON Corporate Finance where he
advised a wide range of technology companies on
fundraising and M&A transactions. Chris has an MSc
in Entrepreneurship and was named Private Equity’s
‘Rising Star’ in his first year at Foresight by Unquote
Magazine.
Chris sits on the boards of Heritage House Media,
Diagnos Holdings and @Futsal.
Email: dmaclennan@foresightgroup.eu Email: spowar@foresightgroup.eu Email: cprice@foresightgroup.eu
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We seek to invest in:
• MBOs, BIMBOs and growth capital transactions
• High quality management teams
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• Businesses with equity requirements of up to £5 million
• Profitable, unquoted UK-based companies
If you are interested in talking to us further, have any
questions, or would like to discuss a specific opportunity,
please do not hesitate to get in touch:
Donald Maclennan
01732 471 806
dmaclennan@foresightgroup.eu
Sonia Powar
01732 471 853
spowar@foresightgroup.eu
Chris Price
01732 471 817
cprice@foresightgroup.eu
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Geared for Success
We would like to say a big thank you to all
of the companies we have worked with
over the last couple of years. The list on
the right is by no means all-encompassing
and we apologise to those we have missed!
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GEARED FOR SUCCESS

Foresight Group is an alternative asset manager with a strong 25 year track
record and specific expertise in environmental infrastructure, solar energy
and private equity investment strategies.
Foresight manages approximately £200 million across a number of funds,
including Limited Partnerships, Enterprise Investment Schemes (EIS) and
Venture Capital Trusts (VCTs) and offers private, high net-worth and
institutional investors access to a number of investment opportunities and a
complete management service.
Foresight’s current unquoted portfolio comprises more than 60 companies
spanning a wide range of sectors including environmental infrastructure,
solar power, communications, IT, media, support services and
manufacturing.
Foresight Group LLP (“Foresight“) is authorised and regulated by the
Financial Services Authority, 25 The North Colonnade, Canary Wharf,
London E14 5HS. Our FSA registration number is 198020. You can view the
FSA register at: www.fsa.gov.uk/register. Foresight Group LLP is registered in
England and Wales with partnership number 0C300878. You can contact
Foresight by post at our registered office: ECA Court, South Park, Sevenoaks,
Kent, TN13 1DU or by e-mail to enquiries@foresightgroup.eu.
www.foresightgroup.eu Designed and produced by Fat Media.