Matrix and Foresight reap 32x on App-DNA exit

The deal values App-DNA at $92m (£58m), which gave the investors a 32x return with an IRR of around 240%.

Matrix held a 30% stake in App-DNA through the Income & Growth VCT and reported total proceeds of £16.4m from the sale. Foresight held a 15% stake in the company through Foresight VCT, returning around £8m to investors.

Guy Blackburn, investment manager at Matrix Private Equity Partners, said that App-DNA has seen a surge in demand after Microsoft's decision to end support for Windows XP in 2014, thus prompting companies to migrate to Windows 7.

Matrix and Foresight initially invested in software technology and services company Camwood through their co-managed Trivest VCT in 2003. App-DNA started within that company as an internal project, but the investors and management decided to commercialise the technology and the new company spun out from Camwood in 2010.

Previous funding
The initial investment from Trivest VCT (later renamed to the Income & Growth VCT and managed by Matrix) amounted to £500k. Foresight invested £250k through Foresight VCT.

Company
App-DNA, spun out from Camwood in 2010, provides application migration and compatibility software for large organisations to reduce the time and costs associated with changing operating systems or virtualisation of IT applications. It has been in a partnership with the buyer, Citrix Systems, for a few years. Based in London, and with offices in the US, Australia, and France, it employs around 80 staff and recorded a £7.6m turnover in 2010/11.

People
Guy Blackburn, investment manager and App-DNA Group director, managed the deal for Matrix Private Equity Partners. Russell Healey, partner, worked on the deal for Foresight Group.

Advisers
Vendor - Mooreland Partners, Victor Garcia (Corporate Finance); Orrick, Hilary Winter (Legal).

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