PEI realises over 60% gain on most recent investment sale

Private Equity Investor PLC (“PEI”), the investment trust which invests in early to pre-IPO stage information technology companies through a broad range of specialist US Venture Capital Funds, saw a gain of over 63% over ten months on the sale by investee fund TCV IV of WebTone Technologies, Inc. to Fidelity Information Services, Inc. WebTone is the developer of the TouchPoint® suite of customer interaction management solutions for financial services organizations and PEI held a 0.41% holding in the company through its 1.46% holding in TCV IV.

Barbara Thomas, Chairman of Private Equity Investor said, “This realisation is further confirmation of the industry’s recognition of the underlying value inherent in our fund investments. The sale was at a 63% premium to our carrying valuation and is just one example of investment opportunities that PEI's top tier US venture partnerships have taken advantage of during recent challenging times.”

As a result of the all cash deal which completed at the end of August and is valued at approximately $91.5 million, TCV IV, who invested $21.5 million in WebTone in October 2002, received $30.4 million in cash, with a further $4.8 million held in escrow for a period of 12–18 months to satisfy indemnification obligations of the company. On the release of this cash from escrow, TCV IV will have received $35.1 million from the sale of its position representing a 1.63 times return in just over ten months. The initial distribution to PEI relating to this transaction totals $445,612.

Established in 1995, TCV manages over $2.5 billion in assets and has financed over 130 companies. They have helped those companies and their management teams to achieve over 35 IPOs and 20 strategic sales or mergers. The sale of WebTone is its 21st trade sale.