Investment Criteria

Typically Smedvig Capital will invest between £2m and £10m in UK based companies. This includes early stage businesses requiring expansion capital, although they will normally already be generating revenue and with a clear path to profitability, through to small buy outs with an enterprise value of up to £30m.

Very occasionally Smedvig Capital will fund start ups, and will consider investments outside of the UK. In these cases the opportunity must be particularly compelling, or be a business model with which we are already familiar.

Smedvig Capital does not focus on ‘pure’ technology businesses, but we understand the critical importance of leveraging technology, and have often backed companies that are applying technology in an innovative way to gain a competitive advantage.

Smedvig Capital places great emphasis on the quality of the owners/managers of businesses to which it provides funding. We look for highly motivated, experienced individuals who are eager to be stretched by both their own ideas and ambitions but are also open to challenge on an ongoing basis from both the Smedvig Capital team and the constantly changing market environment. We further favour individuals who have a proven track record of building and achieving profitable exits from growth businesses.

Over and above an exceptional management team, we target businesses which exhibit strong fundamentals including the following characteristics:

  • Growth sector
  • Clear focus/understanding of customer needs in target market and established product/service addressing the key purchasing criteria
  • Sustainable and scaleable competitive advantage
  • Positive cash flow or a clear and credible path to profitability

Given the breadth of sector experience that the Smedvig Capital executives have from their consulting and operational backgrounds, we are capable of investing in businesses in a wide variety of sectors providing that they exhibit the relevant characteristics and that there is an exceptional management team.

An important consideration for every private equity investor is an exit route. Whilst Smedvig Capital will evaluate exit routes in the same way as any other firm, given our source of funding it is sometimes possible for us to take a longer term perspective.

Finally, we favour investment opportunities which leverage either best of breed business partnerships and/or leverage other companies within the Smedvig Capital portfolio.