Seneca achieves multi-million pound exit for investors

Haydock-based specialist SME investment and advisory service Seneca has exited a York business with a 5.2-times return to investors.

The firm provided a cornerstone growth capital investment to support the Gear4music independent public offering in June 2015.

Since investment the company has experienced significant growth.

York headquartered Gear4music – the largest UK based online retailer of musical instruments and equipment – expanded, both in the UK and overseas, particularly across Europe and Scandinavia.

Gear4music has enjoyed annual revenue increases from £24m to more than £80m in three years, as well as growing its market capitalisation to more than £150m.

The investment generated a 5.2-times return, not including any reliefs provided by the Enterprise Investment Scheme (EIS) for which Gear4music was eligible.

Connor Grimes, investment manager at Seneca, said: “We are delighted with this transaction, not only from a returns perspective but to support such a success story from the regions is fantastic.

“We would like to thank Andrew Wass, Chris Scott and the rest of management for what they have achieved as a market leader in online retail.”

The transaction was facilitated by corporate broker Panmure Gordon.