The Maven VCTs have completed a final exit from Quorum Cyber, which was originally sold to a mid-market Private Equity buyer in 2021, generating an initial return of 6.5x cost. Crucially, the Maven VCTs retained an economic interest in the Quorum business alongside the new owners and have now realised this remaining holding following a strategic investment by Charlesbank Capital Partners, a US private equity firm. This latest transaction has delivered an aggregate return of 8.2x for shareholders.
Quorum is headquartered in Edinburgh, one of the world’s leading centres for cyber security innovation and provides professional and managed security services including a fully managed detect and response capability that enables clients to operate confidently in an increasingly hostile environment. Given the extensive financial and reputational damage often resulting from data breaches, most corporations now view cyber security as a top priority. However, significant expertise is required to combat the ever-evolving threat, which leads many companies to seek an outsourced managed security solution rather than investing heavily to create an in house capability.
The Maven VCTs first invested in 2020 to help the business deliver on its ambitious growth plans. Quorum capitalised on positive market tailwinds to establish itself as a leading player with a reputation for offering customer centric solutions across a range of sectors and was approached by several trade and secondary private equity acquirers before ultimately being sold in late 2021for a 6.5x return for VCT shareholders.
By the time of its sale, Quorum had achieved Microsoft Gold Partner status for security, increased both annual recurring revenues and headcount fourfold, entered the US market and made several key appointments including a Chairman and Finance Director.
As part of the transaction Maven retained a minority shareholding in Quorum, maintaining our belief in the business model, management team and positive market dynamics. Working alongside its new private equity investor, the business continued the impressive growth that it had experienced under Maven, expanding its client base and significantly increasing annual recurring revenues.
"We are delighted with the return for our investors, which highlights the excellent work by the Quorum Cyber management team in strengthening their relationship with Microsoft, entering new markets, growing the team, and enhancing their service offering."
David Milroy, Partner at Maven