YFM Equity, Octopus sell Callstream stake to J2 Global

YFM Equity Partners and Octopus Investments sold their stake in Callstream Group Ltd for an undisclosed sum to J2 Global Inc, a publicly traded technology company based in Los Angeles. UK-based Callstream provides cloud-based call management technology to the insurance, travel and retail markets.


21 March 2016: YFM Equity Partners (YFM) and Octopus Investments (Octopus) have sold their stake in Callstream Group Limited (“Callstream”) for an undisclosed sum to J2 Global, Inc. Callstream is a leading national provider of cloud-based call management technology to the UK insurance, travel and retail markets.  Today’s acquisition by J2 Global provides a full exit for all funds.

Callstream was backed by the Octopus Apollo Venture Capital Trust (‘VCT’) plc, advised by Octopus Investments (Octopus) and British Smaller Companies VCT plc and British Smaller Companies VCT2 plc, both advised by YFM Private Equity Limited (YFM).

Mick Crosthwaite, CEO of Callstream, commented: “Callstream has expanded significantly following backing from YFM and Octopus Investments.  We appreciate the practical advice; strategic guidance and support of both teams in helping us fuel our continued growth over the past five years.  They have been terrific partners and played an instrumental role in helping us achieve our success.”

Commenting on the realisation, Nigel Owens, Investment Director for YFM stated: “It has been a privilege to work with the outstanding Callstream management team and we wish them continued success in the years to come.”

Grant Paul Florence, Head of the Intermediate Capital team at Octopus, said: “We have really enjoyed working with the management team to help them successfully grow the business, both organically and through acquisition. It is a great company that has developed a loyal customer base over the years.  We wish the team every success as they enter this new chapter of growth as part of a global enterprise.”

Octopus and YFM were advised by Knight Corporate Finance and Gateley plc acted as legal counsel.

YFM Equity Partners

YFM Equity Partners, investing through its regulated subsidiary YFM Private Equity Limited, are leading, independently owned private equity investors of up to £10 million.  For over 30 years YFM has invested in and transformed growing small UK companies.

YFM Equity Partners seeks to unlock value and propel growth by providing flexible capital to fuel the development of established UK businesses across all sectors.  Through its offices in Leeds, London, Manchester, Birmingham and Sheffield YFM is dedicated to working alongside management teams to create long-term value for our investors, the companies YFM invests in and a positive economic impact for the communities in which it works.  For more information, please visit www.yfmep.com or follow @YFMEP.

British Smaller Companies VCT plc and British Smaller Companies VCT2 plc are advised by YFM Private Equity Limited, which is authorised and regulated by the Financial Conduct Authority (FRN: 122120) and is registered in England and Wales (Co No 2174994).  Registered Office: 5th Floor, Valiant Building, 14 South Parade, Leeds LS1 5QS.  YFM Private Equity Limited is ultimately owned by YFM Equity Partners LLP.

About Octopus Investments

Octopus Investments is a fast-growing UK fund management business with leading positions in several specialist sectors including healthcare, energy and smaller company investing. Founded in 2000, Octopus manages more than £5.5 billion of funds on behalf of 50,000 investors.

Working closely with financial advisers, we create investment solutions that combine our expertise in smaller company investing with government approved tax reliefs.  Our core product range currently includes Venture Capital Trusts, Enterprise Investment Schemes and Inheritance Tax Services offering award-winning solutions for investors looking for capital growth, income generation or capital preservation.

As an entrepreneurial company, we understand what it takes to build a business. We work hand-in-hand with some of the most successful entrepreneurs and management teams in the country to help finance companies capable of creating, transforming or dominating their industry. We invest in both private companies and those listed on the Alternative Investment Market.

Exceptional customer service and a straight talking approach to investing are integral to the way we do business at Octopus. We have twice been voted one of the best 100 smaller companies to work for.

For further information, visit www.octopusinvestments.com.

Octopus Apollo Venture Capital Trust

The share offer is open until 1 November 2016, unless the fundraising capacity is reached earlier. The minimum investment is £5,000. The maximum investment still qualifying for income tax relief is £200,000.