'Si vis pacem, para bellum’ - if you wish for peace, prepare for war
Parabellum is not a traditional investment business driven by pure financial models and power-point presentations..
Instead we prefer a more dynamic, risk taking approach, where we will back the team leading the new venture. Soul, gut-feel and emotional intelligence balance data analysis..
Our story started in 2007 when Rami Cassis created Documetric as the vehicle to acquire the trade and assets of the cheque processing activities of Atos Origin. He had resigned from his position as the Head of Business Process Outsourcing at Atos to execute the buyout of this tiny division, which had a yearly turnover around £1m and 20% EBITDA losses. The intention was to use this as the starting point to create a platform from which to expand further in the areas of technology and business services. This was a modest transaction funded entirely from equity originating from Rami Cassis’ own capital as well as funds raised from numerous angel investors.
Business performance improved over the next 12 months, the business began to generate cash and in the following year (2008), Documetric completed the £16m leveraged buyout of the share capital of the Active Business Services group, the payment and back-office outsourcing arm of First Data International , which was part of the KKR portfolio of companies. This was a relatively complex transaction, which included property, deferred consideration and a complex inter-creditor deed involving three lenders.
Documetric completed the consolidation of both businesses and successfully reduced the level of debt through cash generation rapidly generated from synergies. The business then acquired the trade and assets purchase of the Database Marketing Partnership at the end of 2009, a small bureau focused on business intelligence and analytics servicing the charities sector.
In July 2010, Documetric acquired software provider Intelligent Environment PLC (www.ie.com ) in a £28m reverse takeover funded with shares. The newly formed, enlarged company was rebranded Parseq PLC and was re-admitted to AIM under the new brand. A capital fundraising of £4.5m at a share price of 7p was also led by Rami Cassis (CEO) and backed by institutional investors at the time of the deal. This effectively created two divisions to the Parseq PLC group of companies – business services and technology.
In August 2010, Parseq PLC acquired the trade and asset of Avance Limited, the CRM and call centre operator, from Sovereign private equity in a pre-pack transaction valuing the business at £500K. The business had performed poorly over a number of years and the level of debt (held with RBS) was unsustainable.
In December 2011, the Parseq PLC group was acquired and delisted from AIM by a fund made up of Rami Cassis, Harbourvest Capital Partners and Nova Capital. The newly formed fund is controlled and managed by Rami Cassis’ vehicle, Parabellum Capital (www.parabellumcap.co.uk) in order to manage the growth and eventual sale of the companies within the fund.
Today the divisions of business services and technology are separated and are run as two distinct companies: Parseq Limited, www.parseq.com , (business services) and Intelligent Environment Limited www.ie.com, (technology). Parseq PLC (the group holding company listed on AIM) was since dissolved.
Parabellum is now the General Partner and investment manager of the fund with Nova Capital acting as its sub-advisor.
We are perpetually searching for a better way to create and leverage value from active investment management.
Our ambition is to create a result that is greater than the sum of the parts. Always and in all ways.
We have developed a pioneering approach with a continuous personal investment of time and money in focused areas where we know we can make a difference
From developing BPO solutions that simplify business, market leading digital software for web and mobile channels, or creating new value in sectors where we have insight, Parabellum Capital Ltd seeks to transform business performance.
We bring together knowledge and operational and commercial perspectives forged in the market place, and fuse them with proven attack and energy in our approach.
Our skills lie in executing commercial turn-around success not pure-play financial engineering.
Our commercial vision and perspective creates incremental value from bringing together complimentary assets and opportunities where others see only structures.
Because we prefer to transact fewer deals, our partners can be assured that we will do everything in our power to ensure their success.
Their business becomes our business, as we strive to multiply the value of the shared business through best practise, new routes to market and better distribution and application of intellectual capital. We will always remain personally involved in our commercial deals.
By way of example, IE shareholders recently invested in PCL’s acquisition of IE at 7p and sold at 9p with a 30% return in 15 months.
Original investors in Documetric in 2007 made five times their money by the time they exited in 2010/2011. Our investment decisions work for the benefit of all.
Documetric
Original investors in Documetric in 2007 made five times their money by the time they exited in 2010/2011. Our investment decisions work for the benefit of all.
Documetric Value drivers:
Documetric Value drivers:
Documetric Value drivers:
Schlumberger. Dexa Systems provide cyber security and identity management to the oil and gas sector. Two other P/E firms applied but failed to secure the deal because they were unable to provide the necessary sector insight and reputational credibility. The business was eventually sold to management in 2012 in a friendly transaction to the benefit of both parties.
Throughout the course of this investment Rami Cassis remained Chairman and majority shareholder and achieved a return of over 10x to shareholders upon the recent sale of the business.
IE
IE institutional shareholders recently invested in our original acquisition at 7p. This raised £4.5 million in July 2010. When the public to private transaction was executed in November 2011 shares were sold at 9p per share – a 30% uplift. In the same period, the FTSE All AIM Index declined by 2%.
Shared risk and reward based on clear and simple metrics
Prefer the balance of our remuneration to be on capital growth success rather than management fees.
We will always back an agreed venture with a minimum of 10% of our own personal funding.
Fundamental understanding of the intrinsic entrepreneurial instinct. We always back our words with deeds and have direct experience of having to provide Personal Guarantees in order to deliver deals. Traditional Private Equity businesses rarely take such a significant personal position in their investments.
We will always stick to our word if we commit to something and never hide behind lawyers or a contract
Personal investment is an intrinsic part of our approach and our investors see this as a great differentiator. We put our money where our mouth is. We are not simply a PE manager. Our co-investors know that not only do we have real operational experience running businesses, but that we are backing our judgement with our own money.
We always apply an imaginative and bespoke approach to deal architecture, which is demonstrated by the wide range of deals that we have executed and includes public market reverse take-overs; leveraged buy-outs; mezzanine debt finance; public market fundraising; all share deals; vendor loan notes/deferred consideration; IPO’s; public market delisting and/or a combination of the above.
We believe that talent alone is never enough. We have a relentless commitment to application and hard work. We commit everyday to search for new knowledge in a spirit of life long learning.
We are permanently dissatisfied with the status quo.
We will only step into a business if we can see that we can bring a rapid material improvement in that businesses performance.
Rami has a recognised track record of developing businesses through people and process focused management. He is noted for his ability to move beyond silos to align various business units to a common goal using cultural, commercial and operational skills learnt across the world.
• Experienced turnaround entrepreneur, shortlisted for the regional final of the prestigious Ernst & Young Entrepreneur of the Year 2010.
• Previously, CEO and main shareholder of AIM-listed Parseq PLC.
• Parseq ranked in the Sunday Times Buyout Track due to its performance from 2009 - 2011
• Spent 9 years at Schlumberger in various management roles across Africa, the Middle-East and Asia
Studied Aerospace Engineering and Mathematical Physics at the University of New South Wales, Sydney, Australia.
Rami is married, lives in London and still practices full contact kickboxing.
Gerry has over 25 years experience in banking, the last 15 of which have been in the asset based lending sector. Gerry’s experience covers all aspects of banking, asset based lending and strategic consultancy, encompassing a variety of roles from managing and setting up a new start business, to operations, credit, risk, client management and consultancy for strategic IT and outsourcing proposals. Whilst working at Logica in the early 2000’s, Gerry was involved in developing a new outsourcing payments business with a clearing bank, in addition to developing a 3 click loan application and various BPO opportunities. Gerry has set up and managed retail branches and business centers for Lloyds Bank and a asset based lending businesses for GE Capital, The Bank of Ireland, Investec & KBC. He was the UK, MD for Enterprise Finance Europe which was the European asset based lending business of The Bank of Ireland. During his time there he was involved in two acquisitions and developing the company from a new start business to one of the UK’s top 10 asset based lenders. The business delivered a 5 year plan in 3 years.
Gerry attended the City of London University where he completed his banking exams and since 1990 has been an Associate of the Institute of Bankers.
Paul has over 17 years experience in senior sales, marketing and operational roles within the telecoms, ecommerce, retail and BPO sectors. He held board level responsibility for marketing, customer service and IS at Optical Express supporting over 200 retail outlets, contact centre and head office functions, following which he led the start up of Bellcom, the pan European contact centre outsourcer. Under Paul’s leadership Bellcom grew from a start up to over 400 staff and acquired a leading ecommerce specialist which was integrated into the business.
In 2001 Paul, backed by RBS and GAP Fund Managers, founded BPO Holdings (iResponse & BPO Collections) which grew to being a leading provider of customer acquisition and credit collections services for clients including American Express, Virgin Media & Avon Cosmetics..
Having acquired a majority stake in the group from its institutional investors in 2007, Paul profitably, exited both businesses in two trade sales in 2010. Paul has a wealth of experience operationally in high growth companies and has led two VC backed start ups and a management buyout..
Paul is 42, married with 3 children and enjoys squash, motorcycling and is a mentor with the Princes Scottish Youth Business Trust.
Shane is a highly driven and focused individual with enormous capacity for work. Shane’s early career evolved through Sales and Management. He has been responsible for the creation and development of three start-ups in different sectors of IT and software. Shane led these Enterprises through their evolution and negotiated multi-million Pound exits delivering significant returns for its shareholders. The last sale was completed in 2006 to Bottomline Inc. where Shane remained a Board Director till 2008.
Since then, Shane has focused on business and sales transformation strategies and delivering his recommendations within companies at early phase to £60+m turnover. He has been seconded via Private Equity backed and Quoted Enterprises in a Consultant, Executive or Non-Executive capacity. The most recent projects have included national and international business expansion strategies, investor post funding strategy alignment and preparation for sale of a multi-million Pound business.
Parseq
Parseq is a business process and technology specialist providing a range of value-add, technology-led services. Complementing this is a core business focus on complex data and payment processing covering a range of front and back-office applications.
More than 100,000 payment transactions are processed daily on behalf of our clients, with an annual transaction value in the region of £25 billion.
Dexa Systems
Dexa delivers a complete enterprise authentication solution, providing access control to both logical and physical assets in a single IC smart card credential. The business was sold in April 2012
IE
A software business, whose NetFinance products deliver a complete online financial services platform that can be deployed across multiple channels; to deliver multiple brands and partners; as separate product installations; and for multiple financial services products.
We deploy a dynamic focus in our commercial approach. Our experience shows that there are many ways to achieve an end goal and we are prepared to be flexible in order to progress. We will only work in those sectors where we have direct personal experience; a unique perspective on value creation or a transformational insight.
Sectors where this happens uncommonly often are Business Services, Technology/Digital and Oilfield Services
We specialise in unlocking value in unloved or under appreciated assets. This includes:
- Corporate disposals: large financial corporations looking for a speedy, discreet exit with a view to selling their business to a reputable acquirer. Parabellum Capital Ltd will continue to honour the level of service and reputation that was being provided to the clients of the business they’ve just sold. This is particularly when those clients remain as clients to the vendor.
- Investors or shareholders looking to achieve a quantum step in the performance and return for their investment.
- Under-performing assets that result from life-stage or events and where a fresh and energetic approach is required.
- Private equity firms that have got their investment wrong.
- Distressed assets or assets in administration
We have significant experience with acquisitions from PE’s who were unable to make a deal work. In other circumstances, our reputation and credibility have given the seller greater confidence that we can deliver more than traditional private equity which typically tends to “price chip” as a transaction progresses.
We won’t waste time.
If we can add value, we’ll prove it.
If we can’t, we’ll say so. Immediately.
The following areas are those where we choose not to operate or don’t have sufficient sector knowledge to enter : Retail; Finance/ leasing; Industrial and Manufacturing