Customer Case Study - Phoenix Equity Partners
Find out how Phoenix Equity Partners uses MarktoMarket to accelerate their origination research
LONDON & MANCHESTER
mID-mARKET pRIVATE eQUITY
Phoenix Equity Partners (Phoenix) is an independent private equity investor that works in partnership with ambitious entrepreneurs and management teams to help them grow their businesses.
The firm has raised over £1.5 billion in capital and made over 53 investments since 2001. The team is highly experienced in building proactive and positive relationships in high growth markets, with a focus on providing value from the very start of an engagement, not just at the point of investment.
Phoenix invests across six core sectors and focuses on a small number of priority areas within each. These sectors include: Consumer & Leisure; Financial Services; Healthcare & Education; Media & Information; Business Services; and Technology Services.
The firm is a strong believer in the power of technology for enabling growth – both for themselves and for their portfolio companies.
Why is data important to Phoenix?
Phoenix is a forward-thinking, innovative investor which considers data to be absolutely integral to its success. Over the last ten years, the team has tested, iterated and embedded a wide variety of software and data solutions into the day-to-day working of the firm. In addition, Phoenix have a dedicated Origination and Research team that provides the wider business with the tools they need to originate, execute and complete investments. This team also specialize in building positive relationships with target businesses long before it’s time to invest; again, data is a key component in this process.
“We think data is very important in how you develop relationships and execute deals. There is no way our 20 strong investment team could build the pipeline and relationships we need without being powered by software, data and information.” Ben Holden, Origination and Research Executive
The team is always looking to test new tools, with a particular interest in solutions that help them automate research workflows and access alternative datasets. However, as experienced users of technology and data platforms, they also have very high standards for which platforms they consider. When it comes to data, quality (how accurate the data is) and timeliness (how relevant and up-to-date the data is) are two of the key benchmarks they use to evaluate potential providers.
We started using MarktoMarket for two reasons. Firstly, when we’re looking at markets we’re interested in, we want to know all the deals that have been done and their associated valuations. There are a very limited number of sources of valuation data, and fewer still which have disclosed values. MarktoMarket’s valuation product was extremely helpful in this regard. Secondly, the team at MarktoMarket shared our views on how alternative data sources could be used for origination, and we were keen to be kept in the loop as the team added more real-time data and functionality to the platform.
Why Did Phoenix Choose MarktoMarket?
Access to robust deal data
A search for robust deal data was what led Phoenix to MarktoMarket in the first instance. MarktoMarket’s M&A database is updated daily with new transaction information, and we collect more enterprise values and multiples than other providers, especially in the lower to mid-market where data is often scare. The team use this data as part of their research into new markets, as well as for helping their existing portfolio.
Innovation in Origination
MarktoMarket’s focus on developing innovative new origination features and providing more alternative datasets is one of the key reasons Phoenix invest in the platform. The team are constantly looking for new signals which will help them identify and assess prospective targets, so the regular addition of new real-time datasets keep the platform interesting and relevant.
Streamlines key workflows
Phoenix has highly sophisticated research workflows which intake a lot of data from different sources. The team is always looking for ways to streamline these workflows so that individuals can focus on high-value relationship work. MarktoMarket aggregates hundreds of historic and real time datasets on one dashboard, making it simpler for the team to find the information they need in one place.
Phoenix value partners who share their forward-thinking approach to how data can be used to streamline research, originate deals and help build positive client relationships. The team want to work with providers who are constantly looking for new ways to use data, and who involve their customers in the process of building new solutions.
What does the team say about MarktoMarket?
Gives access to hard to find data
“We often want to know what transactions happened in the market and at what EV – data which is often not available publicly. MarktoMarket have this sort of data.”
Helps spot interesting companies years ahead of investment
“In terms of how we spend our time, we need to be looking years ahead to find businesses who might be relevant for transactions within markets of interest to us. Finding these entrepreneurs and businesses is one of the biggest areas in which we use data, including MarktoMarket.”
Brings together alternative datasets
“A lot of the alternative data that MarktoMarket is adding to the platform is information we’ve been having to track through several separate vendors over the last ten years. MarktoMarket is taking a lot of the legwork out of the process for us by bringing these datasets together in one place.”
Focuses on interesting new data
“We value the way that MarktoMarket thinks about building the platform and the type of data that you add. Your focus on new and different datasets differentiates you in the market and keeps us interested in the platform and what you’re coming out with next.”
Interested in learning how MarktoMarket can help streamline your research?
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