Sub-investment grade corporate credit specialist Alcentra, part of BNY Mellon, has invested in CorpAcq plc, a South Manchester-based company committed to the acquisition and investment in strong asset backed, profitable and cash generative owner-managed enterprises.
Headquartered in Altrincham and founded in 2006, CorpAcq has grown its business to manage eight portfolio companies representing more than GBP70m in revenues in the year ending December 2012.
The warranted loan investment transaction was underwritten by Alcentra and co-arranged with private-debt fund Prefequity. Graeme Delaney-Smith (pictured) and Frédéric Méreau of the European direct lending and mezzanine investments team will represent Alcentra on the company’s board of directors.
Delaney-Smith says: “Our investment will allow CorpAcq plc to pursue its strategy through new acquisitions and add-ons to its existing portfolio. The transaction is consistent with our investment strategy based on strong downside protection combined with the ability to generate attractive risk-adjusted returns through warrants. We will also consider follow-on funding. The deal follows investments in LM Funerals, Kedleston and Parabis and is another example of our commitment to a UK direct lending strategy.”
Alcentra has been sourcing and arranging financing to middle market businesses since its launch in 2003.To date the company has invested over EUR1.7bn in 81 middle market transactions across senior debt, second lien, mezzanine and equity co-investments.