NetScientific PLC has announced that its wholly owned venture capital and corporate finance firm, EMV Capital Limited, has been appointed as the investment manager to Martlet Capital Limited to manage its portfolio of investments. EMV Capital has also acquired the operational venture capital business of Martlet Capital, excluding the Martlet Portfolio. The Martlet Portfolio comprises 53 investments with a fair value of approximately £23.3 million as of March 31, 2024.
The transaction provides NetScientific and its group with an additional £23.3 million of funds under management, an increase of approximately 89% from the previously announced capital under advisory. It also offers recurring investment management fees for a minimum period of four years and carried interest over the Martlet Portfolio. The respected Martlet brand provides EMV Capital with further exposure to the deep network of Martlet Capital within the globally renowned Cambridge high-tech cluster.
EMV Capital has entered into an investment management agreement with Martlet Capital for a minimum term of four years, under which it will receive annual management fees and carried interest fees based on the increase in fair value of each company within the Martlet Portfolio. Additionally, EMV Capital has committed to providing Martlet Capital shareholders with preferential investment terms and certain co-investment rights.
Pursuant to a business transfer agreement, Martlet Capital Management Limited has acquired the Martlet Business as a going concern, including the existing team managing the Martlet Portfolio, the goodwill, business information, IT systems, business intellectual property, and the Martlet director services company. The consideration payable by MCM to Martlet Capital for the Martlet Business comprises an initial cash payment of £2.00 and deferred cash consideration.
EMV Capital intends to work closely with MCM to leverage the Martlet brand by exploring investor appetite for the proposed launch of two new Martlet funds, Martlet Capital Fund II and Martlet Growth Fund. Further announcements regarding the new funds will be made if and when appropriate.