Synova Generates a 16.1x Return on the Sale of Kinapse

Feb 02, 2016, 08:52 ET from Synova Capital

LONDON, February 2, 2016 /PRNewswire/ --

Synova Capital ("Synova"), an award winning investor into UK growth companies, is delighted to announce the sale of portfolio company Kinapse to Hg Capital, realising a return of 16.1x total invested capital and an IRR of 126%. Kinapse is a leading global provider of advisory, capability building and operational services to the life sciences industry, focused on regulatory, compliance and quality.

Since Synova's investment in 2012, Kinapse has experienced rapid growth both in the UK and internationally with new offices opened in Europe, Asia and the United States. Winning a number of landmark contracts over the period, annual sales have grown from £6.5m to £27.5m, profitability has increased over tenfold and employee numbers have increased from 126 to over 500. Kinapse is now a partner to 9 out of the top 10 global pharma companies and is exceptionally well positioned for future growth.

Philip Shapiro, a Managing Partner of Synova and a Director of Kinapse, commented: "We partnered with a first class management team to help accelerate growth in a fantastic business both in the UK and internationally. The exit is a result of the ambition and hard work of that team and their strong working relationship with SynovaWith a record pipeline and strong market drivers we wish the team every success in the next stage of their development."

Andy Black, CEO of Kinapse, commented: "We have had a fantastic partnership with Synova which has been instrumental in building Kinapse to its successful position today. The entire Synova team has been a pleasure to work with and I have found their strategic counsel and operational discipline to be particularly valuable. As a result, I wholeheartedly recommend Synova as an investment partner to ambitious CEO's of growth businesses."

Nicholas Edwards, Chairman of Kinapse, commented: "Synova have been an outstanding partner for Kinapse providing not just capital but practical help and support, in the financial strategy and management of the business, in thinking about acquisitions and in planning for, and executing, a great exit. Kinapse would not have been able to achieve its high growth and successful returns to all our shareholders without Synova."  

NOTES: 

  1. Synova invests in UK growth opportunities with a particular focus on companies valued at between £10m and £100m. Key verticals include Business Services, Financial Services, Technology, Consumer and Healthcare & Education. Further information on Synova is available from http://www.synova-capital.com or by email press@synova-capital.com.
  2. DC Advisory provided corporate finance advice to Synova with Taylor Wessing providing legal advice and Alvarez & Marsal conducting vendor due diligence.

SOURCE Synova Capital