VC Fund Withdraws $2.5M Investment from Former PwC Boss Luke Sayers’ Firm
In a surprising turn of events, a venture capital (VC) fund has announced the withdrawal of a $2.5 million investment from the Sayers Group, a consultancy founded by former PwC boss Luke Sayers. This move comes as the OECD secretary-general, Mathias Cormann, revealed that he had relinquished his equity stake in Sayers Group.
According to records from the Australian Securities and Investments Commission (ASIC), the parent entity of Sayers Group, known as Sayers Capital, has a capital injection of $23.5 million. However, $14 million remains unpaid on the shares, indicating a total commitment of approximately $37.5 million.
A representative from Sayers Group responded to the withdrawal, stating that McLaren, the VC fund in question, is still an investor but has adjusted their shareholding. The spokesperson mentioned that the Sayers Group’s register will continually change as allocations between investors, partners, and staff are adjusted. Mr. Sayers has also previously commented that he believes the ethics investigation against him is based on baseless allegations aimed at damaging his reputation.
In January, ASIC records revealed that McLaren had planned to inject an additional $2.5 million into Sayers Group in exchange for equity. This would have brought their total investment to $5 million.
The Sayers Group has emphasized that McLaren’s shares were only partially paid, and further capital injection was not necessary as the company remains profitable and generates positive cash flow. Therefore, McLaren’s shareholding was reduced to reflect the amount that had already been paid.
The spokesperson for Sayers Group explained that the company initially focused on both technology strategy and implementing small, customized technology platforms. However, the market response favored the strategy aspect over the bespoke platform, prompting the company to streamline its focus. Currently, the Sayers Group has a successful technology business with 16 staff members based in Melbourne and Canberra, specializing in defining technology strategies, target operating models, technology capability uplift programs, investment plans, and digital transformation.
Over the past year, several partners have left the Sayers Group, including Nicole Scurrah, who departed last year to establish Create Advisory with 12 employees. Additionally, former Deloitte partner Kate Huggins recently returned to Deloitte, while Jerry Hsu and Paul Jackson reunited with Deloitte earlier, focusing on data management, intelligent automation services, and technologies.
Nikhil de Silva, another former partner, has rejoined PwC as the digital business platforms lead after spending nearly a year at Sayers Group and nearly two years at Amazon Web Services.
Despite these departures, the Sayers Group reports profitability in every full year of operation, including FY22 and FY23. Currently, the company has approximately 80 partners and staff members spread across Melbourne, Sydney, and Canberra.
Analyst comment
Negative news: VC Fund withdraws $2.5M investment from Luke Sayers’ firm. Sayers Group still profitable but experiencing partner departures. Market may perceive this as a loss of confidence in Sayers Group, affecting valuation and future investment prospects.