Magenta Partners backs Trustpay from new fund

The growth investor will make equity investments between £5-20m from the new vehicle, which held a final close over the summer.

The fund is backed by a single LP, the Singh Family Trust, the family office of New Look founder and entrepreneur Tom Singh. It will use syndication on up to 49% of its investments.

The first investment in Trustpay is typical of the fund's strategy, as it is UK-based and within what the GP described as its sweet spot of £10-15m.

Trustpay is growing at more than 100% per annum and will record profits between £3-5m for the current financial year, according to a source close to the situation.

Magenta told unquote" it was attracted to the business as it offers a high-quality and diversified earnings profile in the face of macroeconomic headwinds, particularly given its focus on international markets including Africa, North America, South America and south-east Asia.

Magenta generated an 11x return on the trade sale of Halo Insurance in July 2017. It was also an early-stage backer of Pure Gym, which was acquired by Leonard Green & Partners for £600m at the start of November.

Company
Trustpay was founded in 2010 and is based in Guildford. It is a digital consumer payment processing platform used by medium and large companies for processing mobile and internet payments. Trustpay's technology targets key areas such as funnel conversion, payment acceptance rates, fraud and charge-back rates, and regulatory requirements. It is active in 50 countries and employs 30 people.

People
Magenta Partners – Tom Matthews, Chase Emson (partners).
Trustpay Global – Sandy MacAngus, Richard Smith (founders).

Advisers
Equity – Weil Gotshal & Manges (legal); Smith & Williamson (financial due diligence); Intuitus (IT due diligence).
Company – Osborne Clarke (legal).

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