SME INVESTMENT

Providing smaller companies

across the UK with investments

of up to £5 million.

2018

SME INVESTING Whether releasing value from existing shareholders, or injecting capital to allow a business to expand across borders, our investment experts work with management teams on a variety of transaction types, always with the objective of growing the company in a sustainable way.

We focus on investments of up to £5 million with the flexibility to invest across the following deal types:

BUYOUTS

GROWTH

VENTURE

IMPACT

We invest in exciting companies led by strong, experienced management teams. We adopt an open-minded, flexible approach to creating the right structure for each opportunity.

Foresight’s UK portfolio is comprised of more than 45 companies spanning a wide range of sectors including Business Services, Consumer & Leisure, TMT, Healthcare and Engineering & Industrials. We expect to continue to be one of the most active SME investors across these sectors, reflecting our commitment to private equity and venture capital funding in the small cap market.

Building for success

Foresight is a leading

independent infrastructure

and private equity

investment manager

with more than 30 years’

experience in successful

SME investment.

Capability, Commitment, Creativity

Foresight has been an excellent

partner; not only did they provide funds, but they have offered strategic advice and management support that has been invaluable to business development. With Foresight on board we have achieved so much more than we would with purely finance.Dominic Walsh Managing Director Hospital Services Limited

FORESIGHT PRIVATE EQUITY PORTFOLIO SECTOR BREAKDOWN

As at May 1, 2018

TMT 13%

Business Services 13%

Consumer & Leisure 10%

Healthcare 4%

Engineering & Industrial 13%

THE GROUP

Between us the team has more than 350 years of collective investment experience and as a growing, entrepreneurial partnership ourselves, we are able to offer entrepreneurial managers a combination of capital and hands-on expertise to create long-term value and generate higher returns for shareholders.

Asset-backed Lending 2%

Why Foresight?

Established With a successful track record

of over 30 years, Foresight is one of the longest standing SME investment firms in the UK focusing on smaller growth companies

Focus on smaller growth companies We have managed investments in

more than 200 UK-based SMEs and have always focused on investing up to £5 million

Flexible transaction types We will invest in a range of

transaction structures including management buyouts, growth capital, mezzanine, equity release (“cash outs”) and management buy-ins. Our flexible approach means if we like the company, we will find a way to make it work

Sector agnostic We invest across a number of sectors

including business services, consumer and leisure, healthcare, engineering and industrial and TMT

Highly experienced With a diversity of backgrounds in

consulting, entrepreneurship, technology, banking, corporate finance and accountancy, our award-winning team has significant and long-standing experience in SME investing

Track record Since 2010, Foresight has generated

an average return of near 3x on full or partial realisations from our portfolio, creating better returns for our investors and fellow shareholders

Value-add We have the industry contacts,

the skills and the experience to support management teams in growing their businesses substantially and can open doors both nationally and internationally

VCT HOUSE OF THE YEAR

Foresight is always keen to work with

dynamic entrepreneurs and its investment in ONFAB has the makings of a great partnership to accelerate growth

Mac Edwards Adviser, BCMS

We look for:

High quality management teams with

a demonstrable track record of revenue

and growth, a well-formulated strategy

and the drive and expertise to grow

their companies.

Market-leading positions in growing or

consolidating niche markets with a clear

competitive advantage.

Clear business models with the potential for

further growth, often in the UK and overseas.

A resilience to the business model, commonly

displayed through a diversified customer base

or predictable revenues.

We typically invest up to £5 million of equity into UK companies with an enterprise value of up to £20 million. We have a flexible approach and the ability to structure transactions to meet a particular requirement. We control the money we manage, allowing us to move quickly through the investment process.

Growth SMEs run by high quality management teams

Investment criteria

Investment style

The investment process at Foresight is underpinned by a pragmatic investment approach, based on the clear criteria outlined opposite.

Transparent and decisive

The early involvement of senior members of

Foresight’s Investment Committee enables us

to move quickly and decisively when we find the

right opportunity.

We have established a successful track record

in backing, developing and exiting small

companies. Each investee company has access

to a dedicated investment manager who is

empowered to leverage Foresight’s extensive

resources towards achieving the business plan

and who will often source expert Non-Executive

Chairmen to support growth.

Accessory Bits Wellingborough

Aerospace Tooling Dundee

Agar Scientific Stansted

Appinstitute Nottingham

Aquasium Cambridge

Biofortuna Liverpool

Camloc Leicester

Cinelab Slough

Clubhouse Golf Manchester

Codeplay Edinburgh

Crowle Wharf Engineers Scunthorpe

Datapath Derby

Ekkosense Nottingham

Euxton Group Euxton

Ffx Folkestone

Flowrite Maidstone

Fresh Relevance Southampton

Geospatial Insight Birmingham

GGTC St Albans

Hospital Services Belfast

Idio London

Industrial Efficiency Lincs

Itad Hove

Ixaris London

Luminet London

Med Imaging Knowsley

Mercia Power Response Nottingham

Mirico Southampton

Mologic Bedford

Mowgli Manchester

Nano London

Ollie Quinn London

Onfab Middlewich

Player Layer Nottingham

Poppy & Jack’s Cleveleys

Positive Response Dumfries

Poundshop Birmingham

Powerlinks Salford

Procam London & UK wide

Protean Coventry

Qs Recruitment Nottingham

Regency South Godstone

Retail Assist Nottingham

S4RB Nottingham

Salvalco Salford

Specac International Orpington

TFC Europe Heathfield

The Idle Man London & Nottingham

Thermotech Stockport

Tudor Contract Cleaners Manchester

UDP Salford

Utonomy Southampton

200 Degrees Nottingham

SME INVESTING

UK Wide Portfolio Companies

Foresight UK offices

Foresight UK investments

KEY

We aim to put in place funding structures that provide strong incentives for management teams, enabling them to invest in the expansion of their business.

We supply growing businesses with development and acquisition funding, as well as backing MBOs, MBIs and buy-and-build strategies.

We also invest in equity release opportunities, enabling founders and managers to realise a proportion of their shareholding whilst retaining a stake in their business as it continues to grow.

We understand the challenges of building a business and often support our investee companies with several rounds of finance.

Transaction Types

We invest in a broad range

of transaction types,

with the aim of aligning

ourselves with high quality

management teams in

pursuit of sustainable value

generation for the business,

the management and the

investors.

A broad range of transactions

We are delighted to partner with

Foresight and look forward to working closely together in the coming years. The Specac team believes there to be huge opportunities for growth and improvement, building upon our key strategy of innovating with high specification, high quality products that meets our customers’ needs.

David Smith Managing Director, Specac International

Venture

Venture investing is at the heart of

what Foresight does. Our founding

partners started the business over 30

years ago to invest in the burgeoning

information technology sector and we

returned more than 4x to investors

with that first fund.

Foresight Ventures is a specialist team

within SME Investing and invests in

early-stage, knowledge-intensive

businesses with disruptive technologies

and highly defensible IP.

More recently we have formed a unique collaboration with Williams Advanced Engineering, the subsidiary of Williams Grand Prix Engineering to launch Foresight Williams Technology EIS Fund. The fund focuses on early-stage companies developing innovative and transformational technologies, where Williams’ technical expertise in sectors including light weight structures, aerodynamics, electronics and control systems and advanced manufacturing alongside our investment and commercial know-how can be harnessed to help accelerate the businesses towards commercial success.

We believe venture investing is a smart solution to providing much needed capital to early stage companies who in their own way are working to create a smarter future.

Our regional teams work closely with

their local financial adviser networks

in the regions to identify appropriate

opportunities, for creating a smarter

future for local enterprise and

businesses.

Our remit with impact investing is to invest in local businesses to support social enterprise and job creation for the local community where the target levels of return are normally at a lower level than commercial returns.

The aim of impact investing is to fill the equity gap and support social enterprise and job creation for the local community with funds that have a focus on more than purely commercial returns.

We are pleased to have been appointed as the equity funding partner for the Midlands Engine Investment Fund and have played an active role in tendering for the regional impact funds managed by the British Business Bank on behalf of the UK Government.

Impact

Buyout

Our team has a wealth of experience

in buyout investing and looks for

established smaller businesses around

the UK where the managment team

wants to unlock capital as part of an

overall growth plan for the company.

With two institutional funds that have a regional focus – the £40 million Foresight Nottingham Fund LP and £39 million Foresight Regional Growth Fund LP – our team is able to support Buyout opportunities in the respective regions which our VCTs are no longer able to access, allowing shareholders to release value from their businesses whilst maintaining an ongoing involvement and gaining the support of a new partner.

We have been providing growth

capital to small companies to help

fund organic expansion, capex and

acquisitions for over 30 years.

We typically review approximately 1,000 investment opportunities every year, and our award-winning team has made 19 growth capital investments into 16 companies over the 2016/2017. We invest growth capital into SMEs across the UK typically through our VCTs, Foresight VCT and Foresight 4 VCT, for which we have successfully raised £60 million over the past two years.

We have been doing this for a long time, and the experience of our team was reflected in being awarded VCT Investment Manager of the Year at the Growth Investor Awards in 2017 and VCT House of the Year at the Unquote Private Equity Awards in 2016.

Growth

The team

With backgrounds

in industry, strategy

consultancy, technology,

entrepreneurship, banking,

corporate finance, private

equity and accountancy,

our award-winning private

equity team works with

management to apply

expertise and experience

with a view to enhancing

and building long-term value

and ultimately realising

investments successfully.

We pride ourselves on

our track record, having

delivered a near 3x return

on investment across our full

and partial exits since 2010.

I’m thrilled to be working with Foresight

to continue the growth of Mowgli Street Food. I feel passionately about offering healthy, authentic Indian Street food to market. Foresight’s expertise in growing businesses, alongside our recently appointed new recruits, will allow us to expand into new geographies.

Nisha Katona, Founder Mowgli

David Hughes Chief Investment Officer

e. dhughes@foresightgroup.eu

Peter English Founding Partner

e. penglish@foresightgroup.eu

Russell Healey Partner

e. rhealey@foresightgroup.eu

James Livingston Partner

e. jlivingston@foresightgroup.eu

Matt Smith Partner

e. msmith@foresightgroup.eu

The team

Ben Dawson Senior Investment Manager

e. bdawson@foresightgroup.eu

John HoldenPrincipal

e. jholden@foresightgroup.eu

Rodney Appiah Senior Investment Manager

e. rappiah@foresightgroup.eu

Claire Alvarez Senior Investment Manager

e. calvarez@foresightgroup.eu

Mike Quinn Senior Investment Manager

e. mquinn@foresightgroup.eu

Stephan Gueorguiev Senior Investment Manager

e. sgueorguiev@foresightgroup.eu

Chris Wardle Investment Manager

e. cwardle@foresightgroup.eu

Amy Crofton Investment Manager

e. acrofton@foresightgroup.eu

John Cordrey Investment Manager

e. jcordrey@foresightgroup.eu

Matt Pomroy Investment Manager

e. mpomroy@foresightgroup.eu

Rob Jones Investment Manager

e. rjones@foresightgroup.eu

Matthew Evans-Young Investment Manager

e. mevansyoung@foresightgroup.eu

The team

David Miles Investment Analyst

e. dmiles@foresightgroup.eu

Tom Haywood Investment Manager

e. thaywood@foresightgroup.eu

the experience of our team was reflected in being awarded VCT Investment Manager of the Year

at the Growth Investor Awards in 2017 and VCT House of the Year at the Unquote Private Equity Awards in 2016.

If you are interested in talking further, if

you have any questions, or if you would

like to discuss a specific opportunity,

please do not hesitate to get in touch with

any of the team whose contact details can

be found on the previous pages.

Summary

Powering UK SMEs

We invest in:

• Unquoted UK-based growth companies

• Growth capital, MBOs, MBIs, BIMBOs and equity release transactions

• High quality management teams

• Businesses with equity requirements of up to £5 million

ENGINEERING &INDUSTRIAL

Foresight Group LLP (“Foresight”) is a leading independent infrastructure and private equity investment manager with a track record of over 30 years and specific expertise in SME, infrastructure and environmental investment.

Foresight manages over £2.8 billion across a number of funds, including Limited Partnerships, Enterprise Investment Schemes (EIS) and Venture Capital Trusts (VCTs) and offers private, high net-worth and institutional investors access to a number of investment opportunities and a complete management service.

Foresight is authorised and regulated by the Financial Conduct Authority, 25 The North Colonnade, Canary Wharf, London E14 5HS.

Our FCA registration number is 198020. You can view the FCA register at: www.fca.org.uk/register. Foresight is registered in England and Wales with partnership number 0C300878.

Head Office The Shard 32 London Bridge Street London SE1 9SG

t: +44 (0)20 3667 8100

Nottingham 14 Park Row Nottingham NG1 6GR

t: +44 (0)115 727 0650

Leicester c/o Spearing Waite LLP 34 Pocklingtons Walk Leicester LE1 6BU

t: +44 (0)115 727 0650

Manchester 82 King Street Manchester M2 4WQ

t: +44 (0)161 694 8650

Milton Keynes c/o Landmark The Pinnacle 170 Midsummer Blvd Milton Keynes MK9 1FE

t: +44 (0)115 727 0650

www.foresightgroup.eu/private-equity