Technology
The growth of the technology sector over the last 20 years has evolved to include subsets such as proptech, medtech, healthtech, adtech, sports tech, agritech, marinetech and biotech.
These subsets are now supported by specialist VCTs and private equity houses who have both corporate finance experts and analysts with a deep understanding of these subsets. The key to success is knowing which VCT or private equity house to approach.
Asset Backed Business
Covers a number of sectors including self-storage, serviced offices, serviced apartments, affordable workspace and data centres to name but a few.
Over the years, Altcor Capital has been able to secure funding for a number of asset-backed businesses.
Accordingly, Altcor Capital has built up close relationships with private equity houses that understand how best to structure funding for asset asset-backed businesses, which often involves an Opco / Propco structure.
EV
According to Beyond Market Insights, the size of the Global Electric Vehicle Market was worth around USD 178.5 billion in 2021.
This revenue was generated not just from well-known electric vehicle manufacturers such as Tesla. It also includes manufacturers of electric vans, buses, motorbikes, scooters and wheelchairs together with component suppliers to these companies.
In the last two years, Altcor Capital has developed relationships with a number of clients within this sector including Saietta Group plc, Arc Motorbikes and Centaur Robotics.
Hospitality
The world is undergoing a major shift in decision-making and buying power and it's changing the hospitality industry.
Attracting external investment could provide one route to acquisitive growth for hospitality businesses.
While investors such as private equity firms may currently be looking more closely at other industries, hospitality firms who are able to pitch a solid growth plan focussing on emerging and high-growth areas of the market may be able to attract the investment they need to target an acquisition-led growth strategy.
Consumer
Valuing consumer businesses when seeking development capital is not easy. A key element is to find at least 10-15 comparable companies.
For early-stage consumer businesses, net revenue is the most important variable for determining valuation. We look at revenue from every angle to determine the multiple, especially the amount spent on marketing to achieve the revenue level.
Where a consumer company's turnover is less than £2.5 million, we usually propose a convertible loan note which allows a final valuation to be set when there is enough traction to see a clear valuation mark.
Sport
Since 2001, Patrick Cannon has headed up the sports group at Fieldfisher LLP (www.fieldfisher.com).
During this time he has been involved in equity fundraises for many high-profile sports business transactions including the IPO of Glasgow Rangers FC, the contested takeover of AIM-listed Southampton FC, a placing and open offer for London Irish RFC, the takeover of Donington Park Racetrack and the listing on AIM of sports agency business Essentially Group via a reverse into a cash shell.
In addition, some sports such as football have long-term income streams arising from broadcast rights, sponsorship or season tickets which are very attractive to specialist debt providers.
