UK VC firm Osprey Capital eyes two investments, partial exit

UK venture capital firm Osprey Capital is preparing to announce two investment deals, AltAssets has learned.

A source with knowledge of the situation said terms had been agreed to invest into a national independent financial advisor firm and a Malta-based hedge fund developing an innovative structure for the onshore retail market.

Both deals are expected to be announced later this month.

In addition the firm – which today exited its investment in Allium Capital for a massive 12x return – expects to make a partial exit from another portfolio company in the second quarter, according to a second source.

Osprey Capital chairman Ronan Kearney said the investment strategy of the firm would remain the same and it will continue focusing on the UK retail financials.

Up to now the company has focused on seed and founder-stage investments. Kearney said that the early stage of investment was the prime reason  the company received such good returns from Allium.

Osprey invested an unspecified amount into Allium four years ago, and has seen the company’s assets grow to more than £400m during its ownership.

Kearney said, “When you make investments at the (seed and founder) stage, you get very attractive returns.”

However, he added that he will now also look at expansion capital investments. “Our investment model is twofold. We invest our own capital and charge directors’ fees, which builds up cash quickly. We are now looking to deploy our cash,” he said.

Kearney also said that he is not looking to hold a fundraiser and will retain the current investment model as it has worked out well so far.

The firm claims to be unique in the UK as it was established as a limited company rather than limited liability partnership.

As such it only invests shareholder capital, with returns measured solely on a cash-to-cash basis rather than on notional values of underlying holdings.

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