91: Why investing in profitable companies matters more than ever | Harry Heartfield of Edition

13 Feb 2024 / Podcast Tax Enhanced

By Dr Brian Moretta

Harry Heartfield Edition

When we last spoke with Harry Heartfield of Edition, the leisure sector was all about recovering from the pandemic. Fortunately, things have moved on so we thought it was time to ask him back to discuss where we are now, how his investment philosophy has evolved and what the prospects for exits are now.

We covered a lot of areas in our discussion, including:

  • The unevenness of the current recovery;
  • The difference that geography and the target market makes;
  • The need to rebalance portfolio risk now;
  • How live entertainment and hospitality are doing;
  • How to run live events professionally and Edition’s role in supporting that;
  • Prospects for exits;
  • How the landscape of purchasers looks;
  • The challenges of making roll-ups work;
  • Why profitability matters more than ever;
  • How and why to set up EIS deals six months in advance.

It’s another great discussion – Harry is both erudite and insightful, and the lessons are not just about the leisure sector. Enjoy!

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Harry Heartfield, Senior Partner of Edition Capital, has over 15 years’ experience in the leisure sector. In 2011, he joined boutique asset manager Ingenious, becoming a Senior Investment Manager in its Live Entertainment Team; he worked across multiple investment funds including several Venture Capital Trusts with a focus on leisure assets. He also developed and launched several investment products aimed at the retail market, including EIS products which raised more than £25m, and was Head of Investments and Acquisitions for Impresario Festivals plc until the sale of the business to media group Global for more than £28m.

He set up Edition alongside the other Edition Partners in 2015. At Edition, he has overseen the development of Edition EIS and Edition Capital Projects, which have raised over £50m between them. He also was appointed as Strategic Advisor to Superstruct Entertainment (a Providence Equity backed company) from 2017 to 2020 as it made its first acquisitions including Sziget Cultural Management (Hungary) and elrow (Spain). In total, Harry has overseen deals in excess of £220m across the UK and Europe. He sits on the board of a number of Edition’s investee companies including WatchHouse Coffee, Borrow A Boat and Tailwise.