Calculus Capital exits life sciences firm Horizon Discovery with 160% return for its investors after three years
London, September 2016:
Private equity fund manager and Enterprise Investment Scheme and VCT specialist Calculus Capital has sold its holdings in AIM-listed Horizon Discovery.
The average exit multiple for sale of the shares was 1.82x, constituting a tax free return of over 160%, when factoring in initial investor income tax relief of 30%.
Calculus’s holding period in Horizon Discovery was three years and three months, representing a highly efficient investment-to-exit time line. The minimum holding period for a company’s shares to qualify for income tax relief through the Enterprise Investment Scheme is three years.
Horizon Discovery is a world leader in the application of gene editing technologies, which are used for research into, and treatment of, genetically-based diseases.
Calculus invested in Horizon Discovery in May 2013, prior to its IPO on AIM in March 2014. During the period of Calculus’s investment, Horizon Discovery launched numerous new products, signed dozens of licensing deals, acquired businesses, partnered with various major organisations, including Cancer Research UK, and won a number of prestigious awards for its work.
John Glencross, chief executive of Calculus Capital, said: “Horizon Discovery is a great business with excellent management doing immensely important work. It has fantastic future prospects. Nevertheless, our goal is to exit investments as soon as it is commercially viable to do so. Our average holding period for exits is just 4.2 years, a figure about which we are, we believe justifiably, proud. An average 82% return in just three years and three months represents an excellent result for investors.”