Mesirow Private Equity
Co-Investment Example
IVC Group International ("IVC")
Sector
Stage
Headquarters
CEO
Description
Veterinary Services
Buyout
Bristol, U.K.
IVC
Stephen Clarke
Largest and most diversified European veterinary services
platform with more than 1,500 clinics and hospitals across 11
European countries
Investment Thesis
Veterinary services is a large and fast growing industry that demonstrates
resilient underlying growth driven by market trends such as the humanization of
pets and increased pet insurance penetration
Revenue
Adjusted EBITDA
Margin
Net Debt / EBITDA
Significant consolidation opportunity as market remains highly fragmented and
the company has strong M&A execution team
▪ IVC is the market leader at approximately twice the size of its closest competitor;
the company manages nearly 12,000 employees including 3,000 veterinarians, a
portion of which are recruited through the internal development program
IVC GROUP
International
▪ Additional value creation levers include strategic partnership with Nestle,
operational improvements and promotion of branded products
Financial Performance (£ in millions)¹
2017
£450
2019 2020
£1,024 £1,314
122
190
51
11%
12%
15%
5.2x (exc. PIK note as of 3/31/2021)
16 MESIROW PRIVATE EQUITY
2018
£664
80
12%
3/31 LTM
£1,519
263
17%
Source
Other Key Investors
Initial Investment
Investment / Ownership
Description
■
Mesirow
Investment Overview
EQT
Select Co-Investors
July 11, 2019
$22.6 million / 1.2%
- Status: Performing ahead of expectations
▪ In January 2020, Paul Kenyon assumed the role as new CFO
New CEO Stephen Clarke started his position in April 2020
Acquisition activity continues to be very strong in both the UK and Rest of Europe
with more than 250 practices added in the last twelve months
Invested alongside EQT at an enterprise value of
€2.6 billion as negotiated by new investors Nestle
Purina and LGT, providing liquidity to EQT's original
investment in the company
Post-Investment Activity
Fund VII-B
Valuation
▪ On February 11, 2021, IVC announced a recapitalization led by Silver Lake and
Nestle, valuing the company at €12.3 billion. As result of this transaction, Fund
VII-B realized almost $22 million of proceeds while retaining 80% of its original
share position
■ For the six months ended March 31, 2021, revenue and EBITDA increased 37%
and 59%, respectively, as compared to the prior year period
6/30/2021 Valuation ($ in millions)
Realized
Total Value
Cost
$22.6
MOIC²
4.8x
$21.8
$108.8
Valued at 19.7x forward EBITDA based on lead sponsor analysis
1.
September 30th fiscal year-end.
Gross MOIC represents multiple of invested capital, calculated by dividing the investment's cumulative distributions and unrealized value by the total invested capital. Accordingly, it is not reduced by fees incurred by the fund.
The above referenced company and general partner relationship have been included to illustrate Mesirow Private Equity's investment process. The inclusion is not designed to convey that such past specific selections would have been successful for any person. It should not be assumed
that this or similar investment opportunity selections made in the future will be successful or will equal the past performance of that described above.
2.
TRADE SECRET, CONFIDENTIAL AND PROPRIETARY FOR INSTITUTIONAL USE ONLYView entire presentation