Viking Fund operator bought by Scottish group
YORKSHIRE-BASED specialist investment firm Inkopo, which operates the Viking Fund, has been acquired by Scottish firm Braveheart Investment Group.
The deal was announced by AIM-quoted Braveheart and sees Inkopo, which was founded in 2002 by chief executive Andrew Burton after he led the management buyout of UniVentures, the technology transfer vehicle for Leeds Metropolitan University, bought in a deal worth up to £1.31m.
The move by Perth-based Braveheart gives it a presence in Yorkshire for the first time and the opportunity to cross-sell its investment management services to Inkopo customers as well as the benefit of Inkopo’s relationships with academic and public sector bodies in the North of England.
It is a technology commercialisation and investment management company founded in 1997 which makes investments in young, emerging companies and has a portfolio of investments in more than 30 companies.
It has completed 80 deals since it was founded including six flotations and has an exit IRR of 33%.
Inkopo, which has seven employees and offices in Wakefield and Harrogate, operates the Viking Fund, one of the eight regional Early Growth Funds and its not-for-profit sister company, Viking Business Angels Club.
The deal involves an initial cash payment of £75,000 and 511,937 ordinary shares in Braveheart. Two further payments of shares will be made next year and the year after depending on Inkopo’s turnover and other targets.
Inkopo’s turnover for the year to March 31 was £451,528 and its pre-tax profit was £1,176. It had net assets of £164,746 which principally comprise investments in unlisted companies.
Chief executive of Braveheart, Geoffrey Thomson, said: “This acquisition is in line with our stated growth strategy and demonstrates our ability to find and execute such transactions. Inkopo complements our existing business and we now have operating bases in Perth, London and Yorkshire.
“Our plans are to grow Inkopo by making additional operational and financial resources available to the incumbent management and we look forward to working closely with the team. Andrew Burton who runs the business is a well known and respected operator in our market place and I welcome him and his people to the group.”
Andrew Burton, chief executive of Inkopo added: “This is a logical step in the growth of Inkopo. Being part of a larger organisation gives us access to additional resources and means that we can grow the business at a faster rate than would otherwise be possible. Braveheart are respected players in our sector and we look forward to working with them.”
The Yorkshire-based Viking Club is a private group of 25 wealthy investors, formed to co-invest alongside the Viking Fund. From 2004 to 2009, members invested more than £5m, successfully levering in a further £7m from other business angels and venture funds.
