Maven makes 9x on Regent Pacific/Plethora exit

Mikkel Stern-Peltz
12 December 2016

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Scottish GP Maven Capital Partners has made 9x money on its investment in London-based premature-ejaculation-focused pharmaceuticals company Regent Pacific, after a full exit.

The exit saw the buyout firm liquidate its shareholding in Regent Pacific – formerly known as Plethora Solutions – which is listed on the Hong Kong Stock Exchange.

The sale will return cash to the Capital for Enterprise Fund A, a £35m vehicle managed by Maven and launched by Capital for Enterprise (now British Business Bank) as part of a scheme in 2009 to invest in British SMEs. The fund made 17 investments over a 12-month period, according to a statement by Maven.

For Maven, the exit comes six years after it first backed Regent Pacific with a mezzanine loan. In the following years, the GP consolidated its holding in the company through increased equity warrants as Regent Pacific grew.

Hong Kong-based biopharma-focused holding vehicle Regent Pacific acquired Plethora for $157m in March 2016, delisting the company from London's AIM exchange. The holding vehicle made its initial approach in November 2015 with an offer of 12.5 pence per share for existing shareholders, having itself built up a stake of around 30% in the business.

According to the offer document, Plethora expected "significant negative impact" in January 2016 if it did not raise additional capital, due to the company running a loss of around £493,000 in the six months to 30 June 2015, at a time when its cash balance was £2.8m.

Previous funding
Through the Capital for Enterprise Fund A, Maven provided a £1m mezzanine loan facility to Plethora in July 2010.

Company
Headquartered in London, Plethora is a pharmaceuticals company that produces a treatment for male premature ejaculation.

The company acquires, develops and markets products for the treatment and management of urological disorders, with a particular focus on the male sexual health market.

Founded in 2003, the company posted a loss of £4.329m for the year ending 31 December 2015, according to its own financial filings.

People
Maven Capital Partners – Stella Panu (partner).