Mobeus rolls out another buyout for its Institutional Fund
Mobeus Equity Partners has completed an initial investment of £9 million to back the management buyout of Factor 21, a UK provider of invoice finance facilities for SMEs.
Since its establishment more than 15 years ago, Factor 21 has funded over £2bn of invoices for its clients. Today the firm provides flexible finance and accounts receivable solutions to more than 400 SME clients with annual sales of between £0.5m and £6m.
Mobeus is backing the Factor 21 management team to grow from its two existing regional offices. Mobeus sees a significant opportunity to capitalise on strong demand from SMEs for finance and service from alternative lenders, and anticipates supporting the investment with further funding to build a nationwide footprint. The business has also secured a new £50 million debt financing facility from RBSIF.
Factor 21 is led by experienced industry professionals David Tilling, Neal Errington and Darren Cottenden, all of whom are rolling over significant personal investments to acquire the business alongside Mobeus. They are supported by a Board of highly experienced non-executive directors. David Robertson joins as Chairman and is a former CEO of Bibby Financial Services, which grew from three to 42 offices during his fifteen-year stewardship.
Mobeus Partner Jonathan Gregory joins as an Investor Director. Early in his career with Mobeus, Jonathan was a co-founder and Finance Director of invoice finance firm Independent Growth Finance.
Jonathan said: “From our first meeting with the team we understood their plans and have been able to get to grips with what is a complex and technical industry. Having successfully invested in the industry before, we are clear on the important role factoring businesses play in supporting the smaller end of the UK economy and are excited to be backing the team’s plan to deliver geographic growth.”
David Tilling of Factor 21 said: “Mobeus were unique amongst the private equity firms we met in being able to grasp the important dynamics of our sector immediately. As we further develop our business we will recruit new teams to help drive our geographic expansion and grow our client portfolio. We’re delighted to have brought on board both a private equity backer keen to support our plans, as well as RBSIF, who have committed a significantly enhanced facility to support our growth plans over the next few years.”