LONDON: Literacy Capital plc has completed a significant transaction involving its portfolio company Velociti Solutions, selling its stake and re-investing alongside CBPE at a 52 percent premium to the most recently stated carrying value.
Velociti, a software provider to the UK and international bus and rail sectors, was originally acquired as EPM Solutions in February 2020. It was rebranded last year after three additional acquisitions. As of March 31, 2025, the holding accounted for 11 percent of Literacy Capital’s net asset value at £33.8 million.
The stake was sold for £51.4 million, generating a total return of 14.8 times money-on-money and an internal rate of return of 70 percent for the fund’s shareholders. No performance fees or carried interest are payable, and a major portion of the proceeds has been re-invested with CBPE. Following the transaction, Velociti remains one of the fund’s top three holdings.
Literacy Capital said cash proceeds from the deal will primarily be used to repay its revolving credit facility. The fund also plans to return at least £6 million to shareholders—roughly 10 pence per share—through its B Share Scheme by year-end.
“This transaction reflects Velociti’s exceptional performance and our approach to long-term value creation,” said Richard Pindar, CEO of Literacy Capital’s investment manager. “Jeff Hewitt and Carly Wilson have built a highly attractive software group that continues to draw strong interest from private equity investors.”
CBPE’s investment marks the first deployment from its £714 million fund raised earlier this year.