Partner Article

North East Technology Fund hits £8.6m exit sales following latest disposal

The North East Technology Fund, which invests in technology businesses based in or are willing to relocate to the region, has disposed of its stake in mobility solutions firm Route Monkey.

Managed by IP Group plc, the fund has now recorded £8.6m from exits since its launch in 2010. The Route Monkey disposal represents a multiple of 2.9 times its original investment.

The Fund first invested in Route Monkey, which has offices in Gateshead, Scotland and Amsterdam, in 2011. The business develops fleet optimisation software that drives savings and efficiencies for customers including Shell, BMW, Yodel and Iceland.

The sale marks the Fund’s seventh successful exit and follows two disposals to strategic trade buyers and four other transactions, including the secondary sale of shares in AIM-listed Applied Graphene Materials plc following its IPO in 2013. The balance of the Fund’s stake in Applied Graphene is currently valued at approximately £3.5m (as at 24 February 2016).

Duncan Lowery, Fund Manager at IP Group plc, said: “This is a great outcome for both Route Monkey and for the Fund. It represents the seventh successful exit for the Fund in the six years since we started investing.

“It’s pleasing to note that these seven transactions represent the full range of realisation strategies including institutional secondary buyouts, trade acquisitions, management buybacks and listing on public markets.

“As an investor, IP Group has significant experience in corporate finance, law, executive recruitment and fundraising. Our hypothesis is these in-house capabilities bring additional value to the funds we manage and the companies we invest in. I believe this deal represents another step on the trajectory to confirming that hypothesis.”

Ian Wilson, Senior Investment Manager at IP Group plc, said: “The recent disposal of Route Monkey is testament to the hard work of its management team.

“Their industry experience coupled with our expertise in nurturing growing technology companies was an effective combination in achieving this exit. We wish the business a prosperous future.”

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