Interview: Lionel Anthony, Non-Executive Director of Ariadne Capital
By Alex Rahaman, Contributing Editor

While working for The Coal Board Pension Funds Lionel founded CIN Industrial Finance in 1976 which later became known as Cinven. Since Cinven gained its independence from the Pension Funds,  it has become the leading providers of private equity for large European buyouts with €20 billion in buyouts since 1995.

In 1983, he founded Causeway Capital to raise and invest institutional funds into start-ups and development capital. During the 80's and 90's, he raised some ten funds, mainly from UK and US pension funds. The dominance of the U.K. venture capital industry within Europe attracted the attention of European banks and financial institutions and in 1996, he sold Causeway to the ABN AMRO bank, where he continued as Executive Chairman for three years. By the time of the sale, Causeway Capital had raised Funds totalling almost $500 million.

Lionel has also served as Chairman of the British Venture Capital Association [BVCA] in 1987 and 1988, and was later chairman of the MBO/MBI committee of the European Venture Capital Association [EVCA]. Lionel is currently  working out of Brussels through his consultancy, ANTHONY Consulting SPRL. He is also a director of Coller Capital Limited.

Q. How did you become involved with Ariadne Capital?
I met Julie Meyer (CEO of Ariadne Capital) in the spring of 1998. In 2002, I was pleased to be back in touch with her through Alan Turner, one of Ariadne Capital’s Private Investors, and to see her achievements over five years.  Ariadne Capital has an innovative business model and should have a significant impact on rapidly growing companies in Europe, particularly in the technology sector where they have a large data base and both technical and commercial expertise. They properly assess how important access to the right commercial and strategic partners can be at the early end of a business, and are well-positioned to continue to secure these deals for their portfolio. They can raise third party finance and later will have a capability of direct investment through their own Fund.

Q. What are you currently involved in, apart from Ariadne Capital?
Since founding Causeway Capital, I have been responsible for raising more than 11 investment funds, often from major US and European institutions. These included two funds dedicated to smaller publicly listed companies and two mezzanine partnerships.

My new consulting activity, 'ANTHONY Consulting SPRL', is focused on European private equity and the fast growing 'secondaries' market, operating from Brussels. I assist financaial institutions, such as banks and insurance companies, to address the private equity market and help entrepreneurs with their business plans and with expansion finance, including sometimes acting as a business Angel.

The recently released 'Survey of the Economic and Social Impact of MBOs in Europe', for which I had initial responsibility, illustrates the importance of this activity to stimulating growth within the EU.

Q. Where did you receive your professional training?
My professional training was in economics, industry and finance. Holding degrees from London University (London School of Economics), BSc (Econ), a Masters degree in Finance from Sheffield University, (MA), and attended Manchester Business School, of which Association I am a Life Member. I am also a FRSA and a Freeman of the City of London with which I maintain contact through my Livery company, The Worshipful Company of Painters.

Q. Why the move from The Coal Board to investments and, ultimately, Venture Capital?

After nearly twenty years in a number of roles in The Coal Board, and particularly as deputy Director-General of their pension funds, with responsibility for Alternative Investments, I began to understand the important role that small, innovative companies could play in the regeneration of the UK economy.

The Pension Funds gave me a platform to help pioneer institutional involvement in 'direct' investment. I created seven CIN (Coal Industry Nominee) companies to provide permanent capital for companies wishing to expand, including asset finance, through 'leasing', the provision of risk capital (forerunner to Cinven), a film financing company and several other specialist financing operations. Later when at Causeway, as well as providing equity through the Funds under management, I started two activities aimed at supplying working capital to expanding companies where equity was not available: an ‘invoice discounting’ company and a 'equipment finance company' engaged in leasing.

''The structure of economies change, not only within the classic business cycle, but also as old, heavy industry gives way to higher 'added value' activity based on new technology, communication and information. However, the sources of start-up and development capital will always be required. The successful investor must be flexible and design new models to reflect changing market needs. That is where Ariadne and I have 'goal congruence'; together we should create another successful enterprise.''

For more information on Lionel Anthony, see: http://www.ariadnecapital.com