Seneca provided a cornerstone growth capital investment to support the Gear4music IPO in June 2015. Since investment the company has experienced significant growth, providing a 5.2x return to investors.
Since IPO, York headquartered Gear4music – the largest UK based online retailer of musical instruments and equipment – has experienced growth in the UK and overseas, particularly across Europe and Scandinavia. Gear4music has enjoyed annual revenue increases from £24m to over £80m in 3 years as well as growing its market capitalisation to more than £150m.
The investment generated a 5.2x return, not including any reliefs provided by the Enterprise Investment Scheme (EIS) for which Gear4music was eligible.
Connor Grimes, Investment Manager at Seneca said, “We are delighted with this transaction not only from a returns perspective but to support such a success story from the regions is fantastic. We would like to thank Andrew Wass, Chris Scott and the rest of management for what they have achieved as a market leader in online retail.”
The transaction was facilitated by corporate broker Panmure Gordon.
It is important to be aware that not all investments in smaller unquoted companies are successful and investors must understand the risks inherent in such investing. If you are in any doubt then you must speak to a financial adviser. Investments in unquoted companies could put some or all of your capital at risk.