Press Releases
SMEDVIG BACKED PROTEGO ACQUIRED BY CORNERSTONE OF USA
Successful exit to strategic buyer achieves 6.2x return
Smedvig Capital, the London-based private equity firm, announces the sale of investee company Protego Real Estate Investors (“Protego”) to Cornerstone Real Estate Advisers LLC. The sale proceeds of Smedvig’s shareholding brings Smedvig’s total return to 6.2x with an IRR of 58%. Further financial details of the transaction are not being disclosed.
Protego, a commercial real estate fund management company, was established in 2004 with backing from Smedvig Capital. Since then it has grown both in the UK and in Continental Europe and today has assets under management of approximately $2.5 billion.
Commenting on the transaction, Robert Toms, Managing Director of Smedvig Capital said: “The Protego team has done a fantastic job both building a business from the ground up and leading it successfully and profitably through unprecedented conditions in the real estate market. Our focus at Smedvig is to provide both financial backing and wider support to strong, dynamic management teams. We seek businesses which will outperform their peer group through the economic cycle. I’m delighted to say the team at Protego have done just that.
He added, “Discussions with Cornerstone have taken place over the last 18 months, and the timing of the transaction is testament to how well the Protego management team have responded to wider trading conditions. Cornerstone has secured an excellent addition to their client offering with Protego’s European presence, and we wish the combined business continuing success.”
Iain Reid, CEO of Protego, added: “Our deal with Cornerstone allows us to transform our existing business from one with a principally European focus to one with a global outlook. Smedvig has been a very supportive investor, providing not only the funds we needed to get going, but also valuable input to our strategic direction and a useful network of contacts. I’m now looking forward to developing Protego with our new colleagues at Cornerstone and making a success of the next stage in our growth.”
For further information please visit www.smedvigcapital.com
Robert Toms
Smedvig Capital Ltd.
Tel: +44 (0)20 7451 2100
rt@smedvigcapital.com
Matt Ridsdale / James Midmer (for Smedvig)
Tavistock Communications
Tel: +44 (0)20 7920 3150
mridsdale@tavistock.co.uk
Iain Reid
Protego UK
Tel: +44 (0)20 7297 9000
Iain.reid@protegorealestate.com
Notes to Editors
Smedvig Capital
Smedvig Capital is a London based private equity firm that has been instrumental in the growth of over 30 businesses since its founding in 1996. Smedvig believes that equity investing should incorporate high levels of involvement and support, working with management on strategy, finance, operational improvements and business development initiatives. The team shares a common background in strategy consulting, with additional experience in operations, early stage management and banking. Other portfolio companies include Streetcar Limited the UK’s leading car club, MyHomeMove the UK’s leading independent conveyancing firm, Ocean Outdoor which manages iconic, giant format advertising sites across the UK, and Selstor the Swedish self storage operator.
Direct investments are usually in UK businesses, from development capital through to small buyouts, equity commitment typically £2 to £10 million. Smedvig Capital is authorised and regulated by the Financial Services Authority.
Protego Real Estate Investors
Protego Real Estate Investors ("Protego") was launched in April 2004 by Iain Reid, Charles Weeks and Hugo Llewelyn. Protego has a team of top quality professionals in investment management, asset management and business development, as well as finance.
The principals and key investment staff have long and successful personal track records in the property industry going back a number of years.
Protego's business is servicing the needs of institutional and wealth management clients in property, currently in the UK and continental Europe through direct investment, indirect investment vehicles and financial instruments. Protego opened its first continental European office in the Netherlands in March 2006, and a Nordic office in Stockholm in September 2007.