Octopus Ventures, part of Octopus Group and one of the largest and most active VCs in Europe, has exited its investment in Calastone, the global funds network, after a majority stake was acquired by The Carlyle Group. The transaction is subject to regulatory approval.
Octopus Ventures first invested in Calastone at seed stage in 2008 backing the business through its early stages of growth through multiple rounds of funding from both institutional and retail investors, including investment from the UK’s largest venture capital trust (VCT) Octopus Titan VCT.
The exit represents an 18x return on Octopus Ventures’ initial investment, and a 9x return on the total investment, representing an IRR of over 30%. It highlights the value of patient capital and the ability for institutional and retail investors to play a meaningful role in supporting the next generation of UK business.
Founded in 2007, Calastone has grown to become the largest global funds network and has transformed the mutual funds sector through its innovative use of technology and network interoperability. Calastone’s network brings together the entire fund trading process, offering automated order routing, settlement, dividend and transfer services to asset and fund managers.
Jo Oliver, Partner at Octopus Ventures, said:
“The global funds marketplace has undergone a rapid digital transformation over the last decade and Calastone has been at the very forefront of that change, driving significant efficiencies and helping to reduce friction in the market, which ultimately benefits everyone. Today marks an exciting moment for Calastone as it moves into its next stage of expansion.
“Octopus Ventures’ investment in Calastone was one of the very first investments we made from Titan VCT more than a decade ago, and while we always had extremely high hopes for what the business could achieve, it’s been incredible to witness its phenomenal growth as it has become a global market leader in the Fund industry, where it has ambitions to lead the industry’s transition to blockchain based infrastructure. Its story is also a fantastic advert for VCT’s ability to provide patient capital, without which UK success stories like this might not exist. We have relished the opportunity to work with such a talented team at Calastone, led by Julien Hammerson, and we wish them all the best in their exciting next phase of growth.”
Julien Hammerson, Chairman and CEO of Calastone, commented:
“I would like to thank Octopus Ventures and Accel as well as our non-executive Directors Chris Wade and Chairman Cristóbal Conde, who have all contributed greatly to our success. The Octopus team have been an important and valued partner to Calastone being our original investor and we have been delighted to share our journey with them.”
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For journalists in their professional capacity only. The value of an investment, and any income from it, can fall as well as rise. Investors may not get back the full amount they invest.Tax treatment depends on individual circumstances and may change in the future. Tax reliefs depend on the VCT maintaining its VCT-qualifying status. VCT shares could fall or rise in value more than other shares listed on the main market of the London Stock Exchange. They may also be harder to sell. Past performance is not a reliable indicator of future results. Personal opinions may change and should not be seen as advice or a recommendation. We do not offer investment or tax advice. We recommend investors seek professional advice before deciding to invest. Investors should only subscribe for shares based on information in the prospectus and the Key Information Document, which can be obtained from octopusinvestments.com. Issued by Octopus Investments Limited, which is authorised and regulated by the Financial Conduct Authority. Registered office: 33 Holborn, London, EC1N 2HT. Registered in England and Wales No. 03942880. We record telephone calls. Issued: October 2020.