Private equity firm Mobeus Equity Partners has invested £3.3 million of development capital in Proactive Investors, which provides investor media services to small and mid-cap listed companies in the UK.
Proactive Investors was founded in 2007 when Ian Mclelland, now CEO, and Craig Ribton, now UK Managing Director, decided to turn their investor blog into a business. It now provides a range of services to help companies to connect with their investors.
The business specialises in providing breaking news, commentary and analysis on hundreds of small-cap listed companies and pre-IPO firms around the world. It also organises investor conferences, delivers websites and website tools for listed companies, and compiles sell-side research.
Proactive Investors now has 500 clients in the UK, Australia and Canada and its online platforms include www.proactiveinvestors.co.uk and www.stocktube.com.
Mobeus has backed the business to take its services into the US and Proactive Investor will open an office in New York at the end of January.
The investment will also be used to add resources to its existing international operations and further roll out the recently launched investor tools and sell-side research services to customers in the UK.
The transaction is Mobeus’s fifth investment in online businesses and its eighth growth capital deal in the last 18 months.
Amit Hindocha led the deal for Mobeus and will join the board. He said: “We are delighted to be working with the high calibre team at Proactive. Ian and Craig have built a unique platform, working with smaller listed businesses that are rarely profiled by the main-stream investor publications. We are all excited about the opportunity to take Proactive’s proven model into the US, where there is no direct competitor.”
Ian Mclelland, Proactive CEO, added: “It is extremely pleasing to have closed this funding with Mobeus - investment we believe will transform Proactive. As this is the first outside funding we have ever received it was crucial we found the right financial partner and people for what we believe is going to be an exciting journey. In Mobeus we believe we have the former and in Amit and Colin the latter. It is worth noting that to date Proactive has been self-funding. It is testament to the committed and professional team and their efforts that we have secured this financial backing.”