Jon Moulton
Encyclopedia
Jon Moulton is a British venture capitalist. He is the founder and managing partner of the private equity firm
Better Capital, and is the former managing partner of the private equity firm
Alchemy Partners
. Moulton is best known for leading Alchemy Partners' bid to buy MG Rover from BMW
in 2000, which ultimately lost out to a rival offer from the Phoenix Consortium.
Moulton is originally from Stoke-on-Trent
. He was educated at Hanley High School and Lancaster University
, where he took a degree in chemistry. He then trained as a chartered accountant
, and joined Coopers & Lybrand in 1972. He left in 1980 to join Citicorp Venture Capital, and became managing director in London. He was managing partner of Schroder Ventures from 1985 to 1994, and after a spell at Apax Partners
founded Alchemy in 1997.
Moulton has earned a reputation for outspokenness. He has criticised attempts by private equity firms to deflect criticism. He has also spoken out against the favourable tax treatment of private equity. In July 2007 he gave evidence to a Treasury Select Committee of the House of Commons enquiring into the private equity industry, when he accused private equity firms of abusing a generous tax regime. Later that year he criticised the accountancy
profession for a loss of integrity in due diligence
work on private equity buyouts. Despite being an outspoken critic of offshore, Moulton has a residence in low-tax Guernsey in addition to a Guernsey-domiciled investment company.
Moulton resigned from Alchemy in September 2009, saying it is "not what it was", and that he disagreed with plans by other partners to turn Alchemy into a specialist financial services firm. Moulton also apologised to investors for making "too many investment and people errors". and that he will do investment again "but better", (hence the name Better Capital")
In April 2010, Better Capital backed a management buyout
of the UK arm of Reader's Digest
in a £13 million deal with the company's administrator, Moore Stephens. In April 2011 he became Chairman of Verdi Semiconductor Ltd a Fabless semiconductor company in the LED and Power sector. In July 2011 Better Capital purchased http://www.yachtsell.co.uk/blog/better-capital-has-taken-luxury-boat-maker-the-fairline-group-off-3i-the-latest-in-a-run-of-deals-for-the-jon-moulton-helmed-private-equity-firm-the-fund-manager-who-is-thought-to-have-put-£17m-into-the-deal-has-taken-a-majority-stake-in-masco-30-an-investment-vehicle-set-up-to-own-fairline-with-bank-rbs-taking-up-a-minority-position-fairline-is-a-uk-based-manufacturer-of-luxury-power-boats-in-the-38-to-80-foot-range-it-produces-around-170-boats-a-year-to-high-quality-specifications-retailing-from-€200000-to-more-than-€3m.htmlFairline] a luxury Motor Yacht manufacture from Oundle.
Private equity firm
A private equity firm is an investment manager that makes investments in the private equity of operating companies through a variety of loosely affiliated investment strategies including leveraged buyout, venture capital, and growth capital...
Better Capital, and is the former managing partner of the private equity firm
Private equity firm
A private equity firm is an investment manager that makes investments in the private equity of operating companies through a variety of loosely affiliated investment strategies including leveraged buyout, venture capital, and growth capital...
Alchemy Partners
Alchemy Partners
Alchemy Partners is a British private equity firm, which specialises in leveraged management buyouts, management buy-ins and the provision of later stage development capital.Alchemy was founded in 1997 by Martin Bolland and Jon Moulton...
. Moulton is best known for leading Alchemy Partners' bid to buy MG Rover from BMW
BMW
Bayerische Motoren Werke AG is a German automobile, motorcycle and engine manufacturing company founded in 1916. It also owns and produces the Mini marque, and is the parent company of Rolls-Royce Motor Cars. BMW produces motorcycles under BMW Motorrad and Husqvarna brands...
in 2000, which ultimately lost out to a rival offer from the Phoenix Consortium.
Moulton is originally from Stoke-on-Trent
Stoke-on-Trent
Stoke-on-Trent , also called The Potteries is a city in Staffordshire, England, which forms a linear conurbation almost 12 miles long, with an area of . Together with the Borough of Newcastle-under-Lyme Stoke forms The Potteries Urban Area...
. He was educated at Hanley High School and Lancaster University
Lancaster University
Lancaster University, officially The University of Lancaster, is a leading research-intensive British university in Lancaster, Lancashire, England. The university was established by Royal Charter in 1964 and initially based in St Leonard's Gate until moving to a purpose-built 300 acre campus at...
, where he took a degree in chemistry. He then trained as a chartered accountant
Chartered Accountant
Chartered Accountants were the first accountants to form a professional body, initially established in Britain in 1854. The Edinburgh Society of Accountants , the Glasgow Institute of Accountants and Actuaries and the Aberdeen Society of Accountants were each granted a royal charter almost from...
, and joined Coopers & Lybrand in 1972. He left in 1980 to join Citicorp Venture Capital, and became managing director in London. He was managing partner of Schroder Ventures from 1985 to 1994, and after a spell at Apax Partners
Apax Partners
Apax Partners LLP is a global private equity and venture capital firm, headquartered in London. The company also operates out of eight other offices in New York, Hong Kong, Mumbai, Tel-Aviv, Madrid, Stockholm, Milan and Munich. The firm, including its various predecessors, have raised...
founded Alchemy in 1997.
Moulton has earned a reputation for outspokenness. He has criticised attempts by private equity firms to deflect criticism. He has also spoken out against the favourable tax treatment of private equity. In July 2007 he gave evidence to a Treasury Select Committee of the House of Commons enquiring into the private equity industry, when he accused private equity firms of abusing a generous tax regime. Later that year he criticised the accountancy
Accountancy
Accountancy is the process of communicating financial information about a business entity to users such as shareholders and managers. The communication is generally in the form of financial statements that show in money terms the economic resources under the control of management; the art lies in...
profession for a loss of integrity in due diligence
Due diligence
"Due diligence" is a term used for a number of concepts involving either an investigation of a business or person prior to signing a contract, or an act with a certain standard of care. It can be a legal obligation, but the term will more commonly apply to voluntary investigations...
work on private equity buyouts. Despite being an outspoken critic of offshore, Moulton has a residence in low-tax Guernsey in addition to a Guernsey-domiciled investment company.
Moulton resigned from Alchemy in September 2009, saying it is "not what it was", and that he disagreed with plans by other partners to turn Alchemy into a specialist financial services firm. Moulton also apologised to investors for making "too many investment and people errors". and that he will do investment again "but better", (hence the name Better Capital")
In April 2010, Better Capital backed a management buyout
Management buyout
A management buyout is a form of acquisition where a company's existing managers acquire a large part or all of the company.- Overview :Management buyouts are similar in all major legal aspects to any other acquisition of a company...
of the UK arm of Reader's Digest
Reader's Digest
Reader's Digest is a general interest family magazine, published ten times annually. Formerly based in Chappaqua, New York, its headquarters is now in New York City. It was founded in 1922, by DeWitt Wallace and Lila Bell Wallace...
in a £13 million deal with the company's administrator, Moore Stephens. In April 2011 he became Chairman of Verdi Semiconductor Ltd a Fabless semiconductor company in the LED and Power sector. In July 2011 Better Capital purchased http://www.yachtsell.co.uk/blog/better-capital-has-taken-luxury-boat-maker-the-fairline-group-off-3i-the-latest-in-a-run-of-deals-for-the-jon-moulton-helmed-private-equity-firm-the-fund-manager-who-is-thought-to-have-put-£17m-into-the-deal-has-taken-a-majority-stake-in-masco-30-an-investment-vehicle-set-up-to-own-fairline-with-bank-rbs-taking-up-a-minority-position-fairline-is-a-uk-based-manufacturer-of-luxury-power-boats-in-the-38-to-80-foot-range-it-produces-around-170-boats-a-year-to-high-quality-specifications-retailing-from-€200000-to-more-than-€3m.htmlFairline] a luxury Motor Yacht manufacture from Oundle.