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True Capital sees big returns after cashing in on LoveCrafts investment

Retail investor True Capital has revealed that it has exited its first investment and realised a healthy return in the process.

The London-based private equity firm has successfully exited its investment in craft marketplace LoveCrafts following its huge £26m funding round earlier this week which saw early Skyscanner backer, Scottish Equity Partners (SEP) invest in the company.

According to True Capital, the exit realised a 93% IRR and a 10.1x cash on cash return on its initial investment, which it made all the way back in 2013 not long after launch.

Commenting on the exit, Paul Cocker, Partner and Co-Founder at True Capital, commented: “The founders of LoveCrafts have developed exactly the type of business model which fits with our strategy of investing in companies that represent the future of the retail and consumer industry.

“This has proven to be a very strong investment and realising such a strong exit is another example of the rapid progress the firm has made over the last 3 years. I am sure that the team at LoveCrafts will go on to build a significant global business and we wish them every success for the future.”

LoveCrafts Chief Executive Officer, Edward Griffith, thanked True Capital for their role in helping the platform grow over the past three years, a period which has seen the business grow its headcount to over 150 and boast a userbase of millions across 140 countries.

He said: “We are thankful for the support that True Capital has provided the company over the last 3 years and we look forward to maintaining what has become a close relationship as both of our businesses continue to scale over the coming years.”

It caps a busy week at True Capital after it closed its second buyout and growth fund, topping out at £110m and far surpassing its initial £75m target.

With contributions coming from US and UK state pension funds, endowment funds, retail and consumer sector family offices, as well as Adveq, the European fund of funds, the firm now has over £200m of funds under management and a blue chip investor base which it said will provide it with a ‘strong platform’ for future growth.

True Capital CEO, Matt Truman, said of the firm’s second fund: “The firm has made exceptional progress in the last two years. We have developed a platform that institutionalises the competencies that we firmly believe all private equity firms will require over the next several decades; genuine sector expertise, a global network of talent and a sustainable understanding of innovation and change.”