TriVest – the venture capital trust co-managed by private equity firms Matrix, Foresight and Nova – has completed a profitable exit from Secure Mail Services, the Northampton-based provider of specialist mail and package delivery services. On Matrix’s advice, TriVest backed the business in 2002 and has seen the value of its stake rise from an initial £1.3 million to £4.2 million in that time.

TriVest – the venture capital trust co-managed by private equity firms Matrix, Foresight and Nova – has completed a profitable exit from Secure Mail Services (SMS), the Northampton-based provider of specialist mail and package delivery services.

On Matrix’s advice, TriVest backed SMS in 2002 and has seen the value of its stake rise from an initial £1.3 million to £4.2 million in that time. The business is now being acquired by rival investment group Candover, which intends to merge it with fellow mail services group DX.

Under the terms the of the deal TriVest should receive a further £1.5 million for its investment within the next three years, providing certain provisions are met.

‘SMS illustrates the virtue of MBO investments for VCTs,’ says Matrix investment director Bob Henry. MBOs usually need at least three years to show value, but then frequently deliver strong cash profits. We have several other MBOs maturing on plan in our VCT portfolios.’