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Davy clients win big on Roblox as new DPES fund about to close

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Roblox is an online game platform and game creation system

Roblox is an online game platform and game creation system

Roblox is an online game platform and game creation system

Investors in the fourth Davy Private Equity Strategies (DPES) fund will hope to play the markets with success, after an earlier series delivered strong results from Roblox, the international gaming phenomenon.

It is understood that Davy will soon close the new DPES fund, raising over $70m (€65.8m) and bringing total investment through the DPES series to more than $267m since it was first launched in 2015.

Roblox was the biggest mobile game of 2020 in the US, surpassing Candy Crush, which had been the top game for the previous seven years. Its initial public offering in March 2021 gave it a market capitalisation of around $40bn.

It is understood DPES 1 invested in Roblox Corporation in 2018 when it had a reported value of $2.5bn – which means the IPO price equated to an uplift of 16 times the investment over a three-year period. The Roblox market cap has been on a rollercoaster since then, going as high as $79bn and as low as $19.5bn, which would still be an eightfold uplift.

The DPES funds make hundreds of investments, and Davy clients also benefited from the sale of Belron last year.

Last December Clayton, Dubilier & Rice (CD&R) Fund X announced the sale of its investment in Belron, owner of leading vehicle glass repair brands such as Autoglass. The two-part transaction included the sale of around 39pc of CD&R Fund X’s stake.

This valued Belron at €21bn.

CD&R Fund X had acquired its stake in Belron in February 2018 in a transaction that valued the company at €3bn, equating to a sevenfold uplift in value in around three and a half years.

It is understood DPES was a much earlier stage investor, suggesting the uplift for Davy clients would have been materially higher.

Prior DPES funds have delivered an annualised rate of return of between 22pc and 35pc. Clients are usually those with an investment portfolio of €1m
with a minimum investment of €100,000 available for five to 12 years.

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