Kinneir Dufort

Mobeus Completes Hat-Trick of Refinancings

In a busy end to 2018, Mobeus completed refinancings of three investments in its maiden institutional fund.

Design consultancy Kinneir Dufort, financial planning business Ludlow Wealth Management Group and coated steel manufacturer Cooper Coated Coil (CCC) have all raised external debt facilities to enable significant repayments back to Mobeus and support their continued growth:

  • Mobeus invested £6m to support the MBO of Kinneir Dufort in September 2016. Since then, Kinneir Dufort has substantially upgraded its operational systems, added several high profile international clients to its roster and completed an add-on acquisition. Close Brothers has provided finance to facilitate a further significant repayment of Mobeus’s original investment in the business in addition to an ongoing working capital facility to support continued growth.
  • Mobeus invested £8m to support the MBO of Southport-headquartered financial planning business Ludlow in June 2017. In just 18 months post completion, Ludlow has seen a 40% growth in funds under management to more than £1bn. Santander Growth Capital has provided a bank facility to enable a significant repayment of Mobeus’s original investment in the business in addition to providing a dedicated acquisition facility.
  • Mobeus invested £11.5m to support the secondary buyout of Arc Specialist Engineering, a group of three specialist engineering divisions, in July 2017. Within a year of completion, two non-core divisions were exited resulting in the repayment of all external debt and a large proportion of Mobeus’s original investment in the business. Royal Bank of Scotland (“RBS”) has provided a debt facility to recapitalise the remaining division of Arc, CCC, and enable a further repayment of Mobeus’s original investment back to its funders.

Debt advice was provided to Mobeus by Simon Sherliker and Ian Milne at Spectrum Corporate Finance Limited (Ludlow refinancing) and John Weeden and Karl Holmes at Cadence Advisory LLP (Kinneir Dufort and CCC refinancings).

23 January 2019

“Mobeus’s single-funding approach has generated significant traction with management teams, business vendors and corporate finance advisors alike. Pre-completion, it expedites the transaction process by eliminating third-party funding risk. Post completion, it enables management teams to concentrate fully on their businesses, and refinance at their own pace.”

Richard Babington, Mobeus Partner who led the original investments in Kinneir Dufort and Arc and their subsequent refinancings.

Sector

Business Services
Financial Services
Manufacturing

23 January 2019

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