A copy of the Souter Investments 2022 Investment Review is available here.
Souter Investments, the private equity focussed family investment office of Sir Brian Souter, is pleased to announce continued strong performance and growth in its fifth Investment Review.
Sir Brian Souter commented: “Our total portfolio increased in value by 8% per annum over the fifteen years ended 31 March 2022. This is stated after tax, all running costs and adjusting for charitable donations, and compares against a 5% annual return on UK quoted equities including dividends over the same period. Although this may not sound like much of a difference, the compounding effect of our performance means that our portfolio is now 270% higher in value than it would have been if we had invested solely in the UK stock market.”
The Review highlights continued strong performance from Souter’s core private equity portfolio, which generated a 26% annualised return across nearly 30 realised deals. The current private equity portfolio includes companies spanning sectors including industrials, financial services, business services, telecoms media and technology (“TMT”), consumer, healthcare, energy, and education. Two thirds sell business to business.
Souter Investments’ Co-Managing Director Calum Cusiter said: “Sir Brian’s vision for Souter Investments was to create an entrepreneurial family investment office, which would be resilient to economic downturns, generate healthy returns over the long-term and fund charitable donations. Since 2006 we have pursued those objectives by building a diversified portfolio and retaining an opportunistic and flexible investment approach. Our overall strategy of focussing on private equity investments remains the same today as it did over 15 years ago.”
The office has been particularly active over the last three years, adding nearly 20 new private companies to its portfolio. These include LIKEZERO, a software business providing next generation data capture and contract analysis solutions to the financial services sector; Climate Impact Partners, a voluntary carbon markets specialist working with leading corporates, NGOs, and governments to deliver solutions for climate impact; sustainable clothing and homeware brands Celtic and Co and Turtle Doves, which specialise in ethically sourced fashion; and Amber River, a consolidator of the independent financial advice market.
The office has also successfully sold several companies, including Stone Technologies Group; Duke Street backed Voyage Care; Global Risk Partners in a deal led by Penta Capital; and The Rohatyn Group’s Pet Network International. Acquirers have been a mix of strategic corporate buyers and financial investors.
Co-Managing Director John Berthinussen commented: “We are particularly pleased that the returns from our private equity portfolio, where the weight of our capital and efforts are focussed, remain so strong. This is thanks to the talent and tireless efforts of our portfolio company management teams and co-investment partners. While holding high levels of cash and liquidity over the last three years during a period of low yields has inevitably held back our returns in the short-term, and the social and economic backdrop has been challenging, we are pleased with the progress of the portfolio and confident that the new investments we have made will mature to generate continued robust returns.”
A major beneficiary of Souter Investments’ performance is The Souter Charitable Trust, which aims to assist projects engaged in the relief of human suffering, has awarded nearly 20,000 charitable grants totalling almost £130m in funding since 2006. By number, most grants awarded are one-off payments of £5,000 or less, often to smaller local charities working in the communities in which they are based. Larger one-off and multi-year grants are also awarded.
Sir Brian added: “As we traverse today’s set of challenges and seek to identify new opportunities, we are fortunate to benefit from a diversified portfolio of strong businesses and significant liquidity to invest in new deals. Following the sale of Stagecoach Group in May 2022, I am excited to continue with our work at both Souter Investments and The Souter Charitable Trust.”
A copy of the Souter Investments 2022 Investment Review is available here.
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Notes
- Souter Investments is the family investment office of Sir Brian Souter, co-founder of Stagecoach Group plc. It is one of the UK’s leading family investment offices specialising in private equity.
- Founded in 2006, Souter Investments has made over 70 unquoted investments, deploying more than £500m of capital. It currently has significant investments in more than thirty businesses, acting either as the lead investor or as a partner for other financial sponsors.
- Souter Investments’ performance is calculated excluding the contribution of Stagecoach Group plc and net (i.e., post deduction) of all running costs, corporation, capital gains and income tax paid, any provisions, and is adjusted for charitable donations.
- The Souter Charitable Trust is a charity registered in Scotland. Its objective is to assist projects engaged in the relief of human suffering in the UK and overseas, particularly, but not exclusively, those promoting spiritual welfare.
- A copy of the Souter Investments 2022 Investment Review is available here. For more information pleases visit souterinvestments.com.
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