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Tag: alastair brown

Shard Credit Partners Direct Lending Fund I completes another successful exit with sale of Gradwell Communications Limited to LDC-backed Onecom Group for £17.0 million

Posted on by abigailscott
Jamie Ward - Chief Executive Officer of Gradwell Communications
 Jamie Ward, CEO of Gradwell Communications

Shard Credit Partners is pleased to announce the successful exit of its senior secured private credit investment and synthetic equity warrants in Gradwell Communications.  The exit generated a gross IRR of 17.9% and 1.8x multiple on invested capital for SCRP’s Direct Lending Fund I.

Shard Credit Partners provided a senior secured loan in the amount of £8.75 million in support of Gradwell’s acquisition of The Technology Group, in March 2021. The private credit investment manager provided a further £900k to facilitate the bolt-on acquisition of Exeter-based 3CX reseller Grapevine Connect Limited, in August 2024.

As a result of these acquisitions and strong organic growth, Gradwell has evolved during the period of Shard Credit Partners’ investment into a leading and cutting-edge cloud technology company delivering cloud communications services to thousands of UK businesses. Gradwell’s solution portfolio includes its own business-hosted voice system (Wave) and SIP network, as well as award-winning unified communications solutions leveraging 3CX and Microsoft Teams, along with connectivity.

Gradwell has officially joined the Onecom Group, with the support of private equity firm LDC, marking the start of an exciting new chapter for the business. The acquisition is set to accelerate Gradwell’s growth and further strengthen its innovative service offering for SMEs across the UK. By combining complementary technologies, extensive industry expertise, and a shared dedication to delivering exceptional customer value, the partnership paves the way for expanded opportunities and continued success.

Gradwell is a leading provider of VoIP and cloud communications solutions for SMEs across the UK. Since the acquisition in 2021, the business has undergone a significant transformation, expanding its product suite and customer base, while maintaining consistent revenue growth and profitability. The management team, led by CEO Jamie Ward and CFO Paul Mahoney, has successfully executed on its growth strategy, supported by the flexible capital structure put in place by Shard Credit Partners.

Alastair Brown, CEO of Shard Credit Partners, commented:

“Our successful exit from Gradwell showcases the attractive risk-adjusted returns available to investors from the UK lower mid-market direct lending space. In this instance we have achieved 17.9% gross IRR and a 1.8x multiple on invested capital over nearly five years, from a senior secured term loan at opening leverage of 4.2x gross total debt to EBITDA. Attractive returns at these levels are consistently achievable in this segment of the private credit market, which is why we are targeting to raise £250 million for our Direct Lending Fund II”.

Greg Lomas, Chief Investment Officer of Shard Credit Partners, commented:

“It has been an absolute pleasure to work closely with Jamie and Paul in recent years and we wish them well for the future. They have successfully navigated Gradwell through some challenging times and this investment would not have been the success that it has without their dedication and hard work during these past years. We would be delighted to work with them again should the opportunity arise.”

Jamie Ward, CEO of Gradwell Communications, added:

”Our relationship with Shard Credit Partners was instrumental in Gradwell’s growth and ultimate successful sale to Onecom. Their belief in our vision, combined with their hands-on support and flexibility, gave us the confidence and resources to execute our plans. The strength of our partnership was a key factor in our successful sale to Onecom, and I’m grateful for the trust, guidance, and collaboration that Alastair, Greg and the wider Shard Credit Partners’ team provided.”

Paul Mahoney , CFO of Gradwell Communications, said:

”The support of Shard has been fundamentally important to the success we have had growing the Gradwell business these last few years. Alastair, Greg and the wider team have been an absolute pleasure to work with, providing much welcomed advice and support, as well as plenty of good humour to go alongside their extremely pragmatic way of working.”

 

About Shard Credit Partners:

Shard Credit Partners is an alternative investment fund manager focused on high cash yielding private credit strategies in the UK lower mid-market. Current assets under management stands at circa £200 million. Its funds seek to generate superior risk-adjusted returns from conservatively structured senior secured credit investments with meaningful equity upside. Fund strategies include corporate direct lending, technology venture financing and international trade finance.

Shard Credit Partners has successfully completed eleven primary investments and more than thirty bolt-on acquisitions from its debut direct lending fund ‘Shard Credit Partners Fund I’, which held a first close in October 2017 at £90.2 million.  Shard Credit Partners plans to hold a first close on its second vintage UK lower mid-market direct lending fund with a fundraising target of £250 million in 1H 2026.

Shard Credit Partners invests in small to medium sized businesses with strong management teams, supporting them by providing transformative growth capital and event driven financing in support of innovation, growth and expansion.  The Fund invests in businesses across all sectors and throughout the UK.  The firm has a strong ESG focus; in particular, it is a strong supporter of female entrepreneurs and firms with meaningful female leadership, ownership and senior management.

Shard Credit Partners Ltd is an Appointed Representative of Shard Capital AIFM LLP, authorised and regulated by the FCA (FRN 615463).

Contact:

Investor relations:   IR@shardcreditpartners.com

Business:    info@shardcreditpartners.com

Website:    www.shardcreditpartners.com

Shard Credit Partners’ Investee Company JST Completes Transformational Acquisition

Posted on by abigailscott

On 24th December, 2024, JST Ports & Logistics Holdings Ltd (“JST”) completed the acquisition of the rail-handling and logistics company, RFS Works Ltd (“RFS”), for an enterprise value of £18.3 million from Aggregate Industries UK Ltd and GRS Roadstone Group Ltd.

RFS, headquartered in Harlow, Essex, is a leading provider of integrated services for bulk material handling, logistics, earthworks and heavy mobile equipment solutions, primarily focused on the rail transportation sector.

JST, based in Ayr, Scotland and operating throughout the UK, is an independent port handling specialist in the bulks and general cargo sectors, utilising its specialised fleet of mobile cranes and materials handling equipment.

The combination of the RFS and JST businesses will create the leading, independent, UK ports and rail logistics specialist with circa 200 employees, a materials handing fleet comprising more than 100 large machines, and combined annual revenues approaching £40 million.

This landmark transaction marks the second strategic add-on acquisition since the primary MBI of JST by Richard Jennings, backed by Shard Credit Partners Ltd, in December 2020.  In 2024, JST was awarded a King’s Award for Enterprise, for Innovation.

Both RFS and JST have histories dating back over 30-years and have developed unique and industry-leading positions in their respective sectors during this time.  Whilst RFS has historically focused on the bulk aggregates and construction materials sectors, JST serves a diverse base of customers handling a wide range of commodities including aggregates, timber, steel, agri-bulks, general bulks, recycling and alternative fuels.  The newly merged company will have the capability to offer uniquely integrated ports and rail materials handling, transportation and logistics services across the UK and Ireland.  Aggregate Industries and GRS will continue to work closely with RFS going forward.

Richard Jennings, CEO of JST said, “The acquisition and merger of JST with RFS is a deal that has been a long time in the making. The strategic fit and opportunity to drive real synergies on multiple fronts represents an exciting opportunity to enhance the overall service offering to all our customers and drive operating efficiencies.  We have been working closely with the senior leadership team at RFS and look forward to strengthening ties and building a market-leading business together in the coming months”.

Alastair Brown, Founder and CEO of Shard Credit Partners Ltd commented, “we are delighted to have been able to support Richard and his team in delivering this transformative acquisition and look forward to assisting in the integration of RFS with JST to drive significant value creation for our fund investors”.

JST is majority-owned by alternative investment fund manager Shard Credit Partners Ltd, through its UK SME direct lending strategy and current CEO, Richard Jennings, both having invested through an MBI in December 2020.

JST was advised on the acquisition by Newcastle-based RG Corporate Finance, with a team led by partner Carl Swansbury, supported by CF director Alex Simpson and CF manager Sam Shield.  JST received legal advice from Gateley, led by banking and finance partner Andrew Madden with Rebecca Mills and M&A advisory partner Oliver Harker supported by George de Stacpoole. Gateley also produced the legal due diligence report. Hickman Shearer undertook technical due diligence. Financial and tax due diligence was undertaken by Azets. AIUK and GRS Roadstone received legal advice from Addleshaw Goddard. Working capital and asset-based financing was arranged by Specialist Asset Finance Ltd via Cynergy Business Finance Ltd, who were advised by Shoosmiths, led by Natalie Barnes.

About Shard Credit Partners:

Shard Credit Partners is an alternative investment fund adviser focused on high cash yielding private credit strategies in the UK lower mid-market.  Current assets under management is circa £200 million.  Its funds seek to generate superior risk-adjusted returns from conservatively structured senior secured credit investments with meaningful equity upside. Fund strategies include corporate direct lending, technology venture financing and international trade finance.

Shard Credit Partners successfully completed eleven primary investments and around thirty bolt-on acquisitions from its debut direct lending fund Shard Credit Partners Fund I, which held a first close in October 2017 at £90.2 million.  Shard Credit Partners plans to hold a first close on its second vintage UK lower mid-market direct lending fund with a target of £250 million during Q4 2025.

Shard Credit Partners invests in small to medium sized businesses with strong management teams, supporting them by providing transformative growth capital and event driven financing in support of innovation, growth and expansion.  The Fund invests in businesses across all sectors and throughout the UK.  The firm has a strong ESG focus; in particular, it is a strong supporter of female entrepreneurs and firms with meaningful female leadership, ownership and senior management.

Shard Credit Partners Ltd is an Appointed Representative of Shard Capital AIFM LLP, authorised and regulated by the FCA (FRN 615463).

 

Contact details:

Shard Credit Partners

 Investor relations:   IR@shardcreditpartners.com

Business:    info@shardcreditpartners.com

Website:    www.shardcreditpartners.com

Shard Credit Partners Trade Finance Establishes Presence in Middle East with Dubai Office Opening and Business Launch

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UK-based private credit investment manager Shard Credit Partners (“SCRP”), through its wholly-owned subsidiary SCRP Trade Finance Ltd, has expanded internationally with the recent launch of its new business in the United Arab Emirates (“UAE”). This strategic expansion marks a significant milestone in the build out of the company’s International Trade Finance strategy and further enhances its offering to businesses in the Middle East and worldwide.

SCRP launched its International Trade Finance strategy in 2022 and already serves a diversified base of SMEs customers throughout the UK and UAE.

The new UAE office will serve as a hub for SCRP Trade Finance operations in the region, offering trade finance solutions to meet the diverse needs of businesses engaged in both domestic and cross-border trade. With experienced professionals on the ground and a deep understanding of the local market dynamics, SCRP Trade Finance aims to provide seamless and efficient financial support to businesses seeking to grow their trading revenues.

“We are delighted to establish our presence in Dubai, a vibrant economic hub with immense potential for growth and development. By opening this office, we reaffirm our commitment to empowering emerging corporates and SME businesses in the Middle East and beyond with trade finance solutions that drive expansion, foster economic prosperity, and facilitate global trade” said Moiz Akbar, SCRP’s Dubai based Partner in the International Trade Finance strategy.

Chris Ash, Head of International Trade Finance at SCRP Trade Finance, added “as the world economy emerges from the aftershocks of the Covid 19 pandemic, the availability of working capital solutions has become more challenging, especially for the mid and lower mid-market trading communities. Our expansion into this vital trading hub will improve local access for businesses that require incremental financial support.”

SCRP Trade Finance is committed to providing transactional capital to address the capital needs of businesses engaged in cross-border trade; structuring trade finance transactions to optimise financial efficiency and mitigate risks effectively.

Alastair Brown, CEO of Shard Credit Partners Ltd commented,

“Our International Trade Finance strategy offers seasoned private credit investors an interesting alternative to traditional direct lending, with the opportunity for higher cash yields in the high teens and shorter commitment durations of just two to three years. As the underlying trades are self-liquidating, this facilitates rapid recycling of investor capital and return realisation. Investors also have a broader range of investment channels to choose from with this strategy, including investing by purchasing fixed and variable coupon notes issued by a Luxembourg securitisation vehicle, with dedicated investor compartments and an ISIN if desired.”

The opening of the UAE office underscores SCRP’s commitment to structuring innovative financing solutions for its SME clients, fostering long-term partnerships and facilitating business expansion and cross border trade. Having already extended trade finance facilities to existing GCC clients, this expansion will not only deepen ties with current relationships but also underscores SCRP’s confidence in the region for growth and collaboration.

Continue reading “Shard Credit Partners Trade Finance Establishes Presence in Middle East with Dubai Office Opening and Business Launch” →

Shard Credit Partners goes on a Scottish road trip with JST Ports and Logistics Holdings Ltd

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JST’s floating pier operation at Loch Etive

It is difficult to imagine a more idyllic work location than on the shoreline of Loch Etive in the Scottish Highlands. We are several hours drive from Glasgow, which is 104 miles southwest of here. The land quickly steepens away from the loch and in every direction mountains carved out from the granite complex of Etive rise up to meet the skyline.  Notable peaks include Ben Starav at 1,078 metres above sea level, visible in the photo above.

The area is sparsely inhabited, with the primary economic activities being tourism (hiking, fishing and deer stalking), shellfish harvesting, hydroelectric power generation and commercial forestry management. Timber production from sustainably managed forestry and timber processing is an important industry throughout the Scottish Highlands and Islands, contributing nearly £771 million to Scottish GDP annually. In areas that are sparsely populated and far from urban centres, the Scottish timber industry provides full time employment for 19,555 people (source: Scottish Forestry).

 

Timber transportation and logistics industry, banks of Loch Etive
Timber transportation and logistics industry, banks of Loch Etive

Loch Etive, around twenty miles long, is a sea loch which runs approximately north-east to south-west and bisects a designated ‘wild land area’ of 507 km2, just south of Glencoe.  The area, largely uninhabited, is encircled by A roads (the A82 over Rannoch Moor and the A85 around Loch Awe), but the only vehicular access to the shores of the loch is via the twelve mile long single track Glen Etive road (made famous by the James Bond film ‘Skyfall’).  This makes the high volume transportation of felled roundwood timber from the woodlands to processing centres located around the UK and elsewhere challenging, to say the least.

Loch Etive Woods is a designated special area of conservation spanning 2,643 hectares.  60% of this area is taken up by broad-leaved deciduous woodland comprising of ash, hazel and sessile oak habitats, but 3.5% is coniferous woodland. The Scottish Forestry Commission manage a couple of hundred acres of commercial pine forests bordering the loch, harvesting 30,000 tonnes of roundwood timber per annum.  From here it must be transported tens, or hundreds of miles to processing centres as far afield as Birkenhead, where it can be turned into useful commercial products.

 

A cargo ship being loaded up with roundwood logs from JST’s floating pier at Loch Etive

Such remoteness, combined with restricted vehicular access, pits the needs of the Scottish forestry industry against the needs of local tourism, upon which the local economy also depends.  In order to prevent relentless summer traffic jams, clogging up single track lanes with articulated lorries transporting 25 tons per load of freshly harvested roundwood timber out of the forests and away to timber processing centres such as Fort William, alternative strategies must be seriously considered. JST Services (Scotland) Limited (“JST”), a portfolio investment company of Shard Credit Partners, has been innovating in this industry for several decades, becoming a reliable partner within the Scottish commercial forestry ecosystem.

Given the vast watery expanse of Loch Etive, which being a sea loch is conveniently linked to the open waters of the North Atlantic, transportation via ship provides a welcome alternative to road transportation. However, timber plantations can take several decades to mature, with relatively modest extraction volumes. This means it is uneconomical to construct and maintain a permanent pier or port infrastructure to moor sea vessels onto. To get around this, JST has invented the concept of the floating pier, which is movable, can be transferred from location to location by tug boat, and leaves virtually no impact on the local ecology when removed.  JST operates three floating piers at remote locations throughout the Scottish Highlands.

 

JST’s mobile cranes loading timber from its floating pier operations at Loch Etive

The floating pier (shown in the photo above) consists of a steel bridge, which is connected to the shoreline at one end and is mounted on a recommissioned barge at the other, with a strengthened surface so that it can take the weight of a fully loaded timber lorry and a large crane. The timber is driven over the bridge and onto the floating pier, where it is lifted straight off the lorry and into the hold of a waiting cargo ship. Each ship can accommodate between 900 and 2,500 tonnes of roundwood logs, which takes JST’s skilled crane operators between a half and one full day to load each vessel.

The annual CO2 savings from transporting felled timber by sea, rather than by road, are significant. Each year around 30,000 tonnes of logs are expected to be moved by ship from the floating pier at Glen Etive to saw-mills in northern Scotland and north-west England, where they are turned into FSC-certified timber products for fencing, landscaping, cladding, house construction and furniture.  Some 33 ships per year are expected to be moved from Glen Etive, producing an estimated 233 tonnes of CO2 when the final road miles and log handling equipment is factored in.  If these logs were instead to be transported solely by road, the equivalent CO2 impact would be around three times at around 640 tonnes, generating a net saving of approximately 317 tonnes of CO2 annually and removing around 317,000 HGV road miles – even ignoring the negative impact and cost from HGV’s using unsealed Highland single-track roads and the impact on the tourist economy.

The floating pier operation at Loch Etive is just one example of how JST is bringing innovation to the transportation and logistics sector to facilitate the decarbonisation of the UK forest products industry.  JST operates floating pier operations at two other locations in Scotland – one at Ardcastle on the western shore of Loch Fyne and another on the Morvern and Ardnamurchan Peninsulas in the West Highlands. In total, JST estimates its floating pier operations help to reduce emissions of CO2 produced as a result of timber transportation from Scotland to the rest of the UK by around 2,574 metric tonnes annually, saving 1.75 million HGV road miles per annum.

Continue reading “Shard Credit Partners goes on a Scottish road trip with JST Ports and Logistics Holdings Ltd” →

Shard Credit Partners Direct Lending Fund I posts second exit with GadCap Debt Repayment

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(Photo shows key senior management Paul Seccombe (left) and Michael Baker (right))

 

GadCap Technical Solutions Ltd (“GadCap”) has completed its final debt repayment to Shard Credit Partners Direct Lending Fund I, five years after completing its debt-funded primary MBO in February 2019.

GadCap was established through the spin out of the business and assets of the power generation and aerospace solutions division of a multinational engineering conglomerate in the North East of England.

The direct lending investment by Shard Credit Partners was the first of several primary non-sponsored MBOs financed from its inaugural UK lower mid-market direct lending fund.

Despite encountering numerous macroeconomic challenges throughout its first five years as an independent business, GadCap never missed an interest payment and ensured that it repaid the maximum amount of debt possible each year from surplus cash generated from operations.

 

Alastair Brown, CEO of Shard Credit Partners commented:

“The MBO of GadCap is a model for uncomplicated private credit investing in the UK lower mid-market.  The senior management team are now in the enviable position of owning a significant majority of the ordinary shares in a highly cash generative business with zero debt outstanding.  As a minority shareholder alongside Paul and Michael we look forward to the next stage of our exciting journey together”.

Michael Baker said:

“We will be eternally grateful to Shard Credit Partners for providing us initially with the funds to secure the MBO, but also for their continued belief in the team and the support given over these past five years in helping us realise and achieve our goals.”

Paul Seccombe added:

“We are immensely proud, having come through a couple of uncertain economic years to have successfully paid off the facility loan after five years as we set out in our business plan when forming the company.  We are now in position to review our strategy and provide a platform for the future using Shard as our credit partner as we continue our venture.”

 

Continue reading “Shard Credit Partners Direct Lending Fund I posts second exit with GadCap Debt Repayment” →

Shard Credit Partners invests £1.6 million in Location Sciences Group PLC to support Sorted Group Holdings Limited acquisition and AIM listing.

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Shard Credit Partners has completed a cash equity investment of £1.6 million from its Venture Debt Fund I in support of the acquisition of Sorted Holdings Limited by Location Sciences Group PLC and listing on AIM.

The newly enlarged group will trade on AIM as Sorted Group Holdings PLC (SORT).

 

The transaction provides the enlarged group with the investment necessary to continue implementing its business strategy and serving its corporate and enterprise retail customers, which include M&S, Boohoo and Asda. It will enable Sorted to continue its mission to bring ecommerce retailers of all sizes confidence in every delivery, every time.

Shard Credit Partners provided Sorted Holdings Limited with a £3.0 million senior secured venture debt facility in September 2022. Since then, the private credit investment firm has continued to provide investment capital in support of a successful organic growth strategy led by CEO Carmen Carey.

Carmen Carey, CEO of Sorted commented:

“Shard Credit Partners has stepped up once again and proven to be a reliable and trusted financial partner. Their latest equity investment in support of our AIM listing demonstrates a strong commitment to our continued growth story.”

Alastair Brown, CEO and Founder of Shard Credit Partners commented:

“we are delighted to be supporting Carmen and her team as Sorted embarks upon the next exciting phase of its journey as an AIM listed company. We hope this IPO heralds a turning point for the UK’s homegrown technology sector”.

Simon Wilkinson, Petar Cvetkovic and Dr Nigel Burton join Sorted’s board, with Mahmud Kamani and Richard Hughes also investing in the group.

Wilkinson is a highly experienced software executive and entrepreneur, having held senior leadership positions in a number of public and private companies throughout his career. Simon is investing in the group, alongside Mahmud Kamani, the founder of Boohoo Group, and Richard Hughes, the founder of Zeus Capital.

Additionally, Petar Cvetkovic and Dr Nigel Burton will join the Sorted board as Non-Executive Directors. Cvetkovic is Founder & Chairman of Welford Investments and was formerly the Chief Executive Officer of DX (Group) Plc and Target Express, and Dr Burton is currently a Non-Executive Director of BlackRock Throgmorton Investment Trust PLC, DeepVerge PLC, eEnergy Group PLC, Mobile

Streams PLC and Microsaic Systems PLC. Mahmoud Warriah, the CFO for the enlarged group, will join Carmen Carey, CEO of Sorted Group Holdings PLC, as Executive Director.

Founded more than a decade ago and recognised as one of the fastest growing companies in Europe by the Financial Times, Sorted delivers transformational tech on a global scale. Trusted by leading retailers – such as ASOS and Asda – Sorted helps brands to make five-star delivery experiences their superpower.

Shard Credit Partners was advised by Scott Morrison, Partner at Orrick LLP and Simon Whiteside, Tax Partner at Ryecroft Glenton and Nicoletta Papademetris, Matt Barr and David Tran at BDO LLP.

Continue reading “Shard Credit Partners invests £1.6 million in Location Sciences Group PLC to support Sorted Group Holdings Limited acquisition and AIM listing.” →

JST Services (Scotland) Ltd completes acquisition of pier and haulage division of TSL Contractors Limited, Isle of Mull, West Coast of Scotland.

Posted on by abigailscott
Roundwood timber being loaded onto a cargo ship at Fishnish Pier, Isle of Mull.

 

Shard Credit Partners’ investee company JST Services (Scotland) Ltd (“JST”) has acquired the pier and haulage division of TSL Contractors Limited (“TSL”), located on the Isle of Mull off the West Coast of Scotland. This strategic acquisition extends JST’s operations in the Scottish timber transportation and logistics industry. Approximately 50,000 tonnes of roundwood logs are loaded onto cargo ships at Fishnish pier each year, to be transported across the open sea to processing centres on the UK mainland.

JST is a unique provider of mobile port logistics and materials handling and transportation services at ports around the UK and Ireland. From its base in Ayrshire, South West Scotland, JST operates a fleet of mobile cranes, timber haulage vehicles, timber handling vehicles, and mobile port handling equipment. Much of its equipment has been developed specially with its clients and equipment manufacturers to undertake complex materials handling tasks, creating a unique IP and patent base.

TSL has operated Fishnish pier on an exclusive basis on the Isle of Mull since its construction in 2014 on behalf of the Scottish Forestry Commission (Forest and Land Scotland) which manages 470,000 hectares of Scotland’s forests and woodlands. TSL’s fleet of HGV’s haul around 50,000 tonnes of timber per year from the surrounding Mull forests to the pier, where it is loaded directly onto cargo ships for transport to timber processing facilities. This operation provides valuable economic activity in a sparsely populated area of the country, in addition to providing an essential service in the maintenance of the ecological supply-chain of the island.

The Fishnish pier activities on Mull are viewed as being particularly attractive to JST, not only from an economic perspective, but also from a strategic perspective. The integration of the Fishnish pier operation into the wider JST Floating Piers division strengthens its network and offering to customer engaged in sustaining the Scottish commercial forestry industry.

Richard Jennings, managing director of JST said:

“This strategic bolt on acquisition to JST’s Floating Piers division in Scotland will enable us to further expand our offering to key customers, especially the Scottish Forestry Commission”.

Alastair Brown, CEO of Shard Credit Partners, comments:

“this acquisition is strongly accretive and will help to accelerate JST’s expansion in the Highlands and Islands, complimenting recent strong organic growth achieved throughout the UK and Ireland since our investment in the business three years ago”.

Legal advice to JST was provided by Gateley Legal, led by Oliver Harker. Financial DD was provided by Azets, led by Graham Cunning and Joseph Sheridan.

Shard Credit Partners’ strategy is to become a leading provider of capital to entrepreneur and management-owned high growth businesses and private equity-owned companies focused on achieving transformational growth and expansion in the UK regions.  During the past five years, Shard Credit Partners has invested more than £150.0 million in supporting regional Management Buy-Out transactions throughout the UK regions and M&A buy-and-build acquisition strategies, as well as growth capital expenditure financing.

Continue reading “JST Services (Scotland) Ltd completes acquisition of pier and haulage division of TSL Contractors Limited, Isle of Mull, West Coast of Scotland.” →

Veremark extends Series A with $4m from Shard Credit Partners and acquires 2 companies in ANZ

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The global Pre-employment screening service will continue to expand its geographic presence across Europe & Apac as well as acquire more businesses

London, 9 May 2023 – Veremark, the global web3.0 pre-employment screening and verified career credentials firm, has raised a further $4m in debt funding led by a new investor, Shard Credit Partners, a specialist lender to the Fintech sector.

This comes just 6 months after its initial $8.5m series A round led by Stage2 Capital and participated in by Samaipata, ACF Investors and Triplepoint and brings the company’s total funding raised to date to $16.3m including early seed and angel investment

Veremark who offers more than 40 kinds of credential checks in 150 countries has seen its client base double since the close of its Series A and now has over 1300+ clients.  The growth in the client base has predominantly been due to the increased ease and simplicity of the platform’s ability to get clients onboarded and help them manage a growing need for international checks.

In addition to furthering its organic growth strategy, Veremark has also acquired Employrite Pty and Employrite Ltd in Australia and New Zealand, strengthening the group’s capabilities across APAC.

As one of APAC’s longest standing pre-employment screening agencies, Employrite brings with it a wealth of industry experience and blue chip client base.  The acquisition encompassed both the Australia and New Zealand books of businesses and IP.

Veremark continues to operates as a globally distributed team with core hubs in the UK, USA, Australia, Singapore, India, and the Philippines, with over 100+ team members servicing clients 24/7.

Daniel Callaghan, CEO of Veremark, said: “We are delighted to bring Shard Credit Partners with us on the journey of transforming how companies ensure the appropriate screening and continued compliance of their employees.  Our mission remains to help the world trust faster and with both Shard and Employrite onboard now we can bring this to reality, not only in our key markets of the UK growth sector, but also across the broader ANZ region.”

Alastair Brown, CEO and Founder of Shard Credit Partners said, “we are delighted to have recently completed this innovative venture debt investment in Veremark to facilitate the geographical expansion into Australia and New Zealand through these two exciting acquisitions. This transaction is in our sweet spot of investing in UK tech-focused SMEs to help accelerate growth and jobs creation.”

Whilst David Birchall founder and Katrina co-founder of Employrite shared, “The marrying of Employrite and Veremark is a great union.  With our market knowledge and presence supported by their state of the art technology and global reach means that we can continue to deliver more for our clients.  We are excited by what the future holds.”

The pre-employment screening market is estimated at $16bn[1] annually, with strong continued global growth expected.  With more than two million screening checks now completed by the Veremark group, the company has a wealth of data to drive further automation and insights as well as continue to pioneer it’s innovative blockchain based credentials offering.

About Veremark: Veremark is a global background screening service that works with companies to run checks on prospective employees, business partners, LPs and founders.  The company operates globally with regional offices across APAC, UK, EU and USA. Since launch in 2019, the company has served hundreds of the world’s top venture backed companies and multinationals to implement better people compliance practices and works directly with Heads of Talent Acquisition to help them improve speed and overall hiring experience. To find out more, please visit www.veremark.com

About Shard Credit Partners: Shard Credit Partners is an alternative investment fund manager focused on private credit strategies in the UK lower mid-market.  Its funds seek to generate superior risk-adjusted returns from conservatively structured senior secured credit investments with equity upside.  Fund strategies include SME direct lending, tech-focused venture debt and global trade finance.  Assets under management currently total circa £200 million. Investors include UK governmental organisations and public and private pension funds in the UK, Europe and Asia.  Shard Credit Partners Ltd is an Appointed Representative of Shard Capital AIFM LLP, authorised and regulated by the FCA.

About Stage 2 Capital:  The first go-to-market venture capital firm, Stage 2 Capital, combines capital and GTM execution expertise, leveraging its elite LP base of 300+ senior executives from unicorns and Fortune 500 firms to help portfolio companies scale revenue and accelerate growth. Stage 2 Capital invests globally in earlier-stage B2B software companies. To find out more, please visit https://www.stage2.capital

About Samaipata: Samaipata is a pan-European venture capital fund investing in digital platforms with network effects at the early stage across Europe. With €150m under management, they focus on backing early stage founders in the UK, France, Germany and Southern Europe. To find out more, please visit https://samaipata.vc/

About ACF Investors: Launched in 2011, ACF Investors (formerly the Angel CoFund) is a privately managed and commercially focused venture capital fund that works alongside sector smart business angels to invest in high potential SMEs across the UK, directly providing funding to support exceptional businesses.

To date ACF Investors has supported 100 companies, including such names as Ebury, Gousto, Creo Medical and Form3, providing more than £50 million in direct investment alongside more than £300 million from business angels and other investors, making it one of the most active early-stage investors in the country. To find out more, please visit www.acfinvestors.com

About Triple Point Ventures: Triple Point Ventures is the venture arm of Triple Point, a purpose-driven investment manager with £2.5bn AUM, creating investment opportunities to help address society’s biggest challenges. Find out more at www.triplepoint.vc

[1] https://www.sec.gov/Archives/edgar/data/1210677/000119312521177004/d147929ds1.htm

Growth Intelligence secures £1.5m of venture debt funding from Shard Credit Partners

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Growth Intelligence has secured £1.5m of funding from Shard Credit Partners through its UK technology-focused venture debt fund. This marks the third investment made by Shard Credit Partners’ new fund, and the first since its successful first close which was announced in June 2022.

Growth Intelligence helps B2B marketers, who have struggled to accurately and completely define their audiences, run more efficient and creative digital-first campaigns. With the world’s richest data on SMEs, Growth Intelligence allows marketers at blue-chip, global clients including American Express and Vodafone, to run ABM at scale for the first time.

The Company has won numerous awards and has received backing from Innovate UK, the UK’s innovation agency.  Growth Intelligence has been experiencing rapid growth over recent years and generated a 100% year-on-year revenue increase for 2021-2022.  The funds raised will be used to support sales team expansion, product development and expansion into new markets planned for the coming year.

The investment is in line with Shard Credit Partners’ strategy to target borrowers with annual recurring revenues of at least £2.0 million, operating in the B2B SaaS and fintech sectors and benefiting from long term customer contracts.  Its focus is to provide flexible venture loan capital in support of sales growth, through increased expenditure on marketing initiatives. Previous investments include PassFort, which generated a total gross IRR of 249.2% in just six months (1.8x multiple on invested capital) and Rezatec.

Venture debt is becoming increasingly popular with high growth technology companies globally in recent years.  The asset class is highly developed in the United States, having positively tracked the strong growth in the venture equity market during the last two decades.  The venture lending market is in its infancy in the UK and remains an area that is materially underserved, which has created an opportunity for innovative private credit managers to raise dedicated technology venture debt funds.

Market demand for venture debt in the UK is being driven on the back of very strong growth in the technology venture capital sector over the past decade, which now comprises approximately 13,000 post series A technology companies.  This represents a significant addressable market opportunity for specialist UK technology venture debt funds, such as the one launched by Shard Credit Partners Limited.

Tom Gatten, CEO of Growth Intelligence commented, “Growth Intelligence’s goal is to cement its position as the only platform offering account based marketing at scale — across the U.S. and the U.K. The opportunity for businesses to acquire new customers digitally is growing post-covid, yet most marketing leaders struggle to confidently define their ICP and total addressable market, which leads to high digital ad spending, slow growth, and low conversions. We’re here to solve this problem and transform B2B marketing by enabling large enterprises and mid-sized companies to build, scale and launch account-based marketing programs at scale. This latest round of funding will help support Growth Intelligence to invest in our own commercial team and become a global account based marketing champion and are pleased to have received this venture debt from Shard Credit Partners.”

Alastair Brown, Chief Executive of Shard Credit Partners, commented, “Our investment in Growth Intelligence marks the third investment from our new venture debt strategy.  The investment team, led by Will Chappel, has a strong pipeline of opportunities and we expect the pace of deployment to continue through the summer months, supporting positive fundraising momentum as we approach subsequent fund closes through the remainder of 2022.”

Shard Credit Partners Limited is currently in advanced discussions with several UK and international institutional investors with regard to participating in subsequent fund closes throughout summer 2022.  The target fund size at final close is £75 million, with a hard cap at £100 million, by June 2023.

Shard Credit Partners Limited has a strong focus on ESG across all its private credit investments and has historically been a strong supporter of female entrepreneurs and firms with meaningful female leadership, ownership, and senior management.  No less than 80% of its investee companies have female board representation and 60% have mixed sex equity ownership, a direct result of Shard Credit Partners Limited’s implementation of ESG covenants and ESG margin ratchets in its loan agreements and investment documentation as standard.

Legal advice to Shard Credit Partners was provided by Orrick LLP, led by Partner Scott Morrison and supported by Hridi Chowdhury.

 

 

About Shard Credit Partners Limited:     
Shard Credit Partners Limited is an alternative investment fund manager focused on private credit strategies in the UK lower mid-market.  Its funds seek to generate superior risk-adjusted returns from conservatively structured senior secured credit investments with equity upside. Fund strategies include SME direct lending and tech-focused venture debt.

Shard Credit Partners Limited is currently investing from its debut direct lending fund Shard Credit Partners Fund I, which held a first close in October 2017 at £90.2 million.  Shard Credit Partners Limited plans to hold a first close on its second UK lower mid-market direct lending fund during Q4 2022.

Shard Credit Partners Limited invests in solid small to medium sized businesses with strong management teams, supporting them by providing transformative growth capital and event driven financing in support of innovation, growth, and expansion. The funds invest in businesses throughout the UK.

Recent investments include the venture debt financing for Rezatec Limited in August 2021, the refinancing and shareholder reorganisation of Midwest Mechanical and Electrical Services Ltd in August 2021, as well as the financing in support of the acquisition of The Technology Group by Gradwell Communications in March 2021. The SME direct lending fund also funded the MBI of JST Services Ltd in Scotland, the MBO and buy-and-build strategy of eQuality Solutions Ltd in the North-East of England, and the MBO of Chameleon Technology (UK) Ltd in Harrogate, North Yorkshire, each of which completed in December 2020.

In 2020, Shard Credit Partners Limited ranked eighth in the Debtwire UK Direct Lender league table published by Acuris. Shard Credit Partners Limited was recently awarded Alternative Finance Provider of the Year 2021 (North-East region) at the Insider Media Dealmakers Awards.

Shard Credit Partners Limited is an Appointed Representative of Shard Capital AIFM LLP, authorised and regulated by the FCA (number 615463).

 

Contact details:

Newgate Communications

 

 Elisabeth Cowell / Robin Tozer / Isabelle Smurfit

Email: shardcapital@newgatecomms.com

 

Shard Credit Partners Limited

 

 Head of Business Development: ben.ellis@shardcreditpartners.com

Investor relations:   IR@shardcreditpartners.com

Business:    info@shardcreditpartners.com

Website:    www.shardcreditpartners.com

Shard Credit Partners provides £900K in support of the acquisition of The Educational Guidance Service Ltd by eQuality Solutions Ltd.

Posted on by shardadmin

Shard Credit Partners has provided financing of £900K to portfolio company eQuality Solutions Ltd (“eQS”) to facilitate the acquisition of expert psychology business The Education Guidance Service (“EGS”).

eQS is a leading disability, diversity and inclusion specialist, headquartered in the North East. The group specialises in the support of students that qualify for an annual grant under the Disabled Students Allowance (“DSA”), as they enter higher education within the UK. The acquisition of EGS is the third acquisition by eQS in only ten months since the primary Management Buy-Out (“MBO”) in December 2020, as the group successfully executes its M&A buy-and-build strategy with the financial firepower being provided by the Shard Credit Partners.

EGS is based in Halifax, West Yorkshire, and has over 40 employees. The company was established over 22 years ago and is one of the largest providers of educational and occupational psychologists. EGS provides services to children, young people and adults who experience specific learning difficulties and social and emotional barriers both within educational settings and the workplace.

Due to EGS’ complementary capabilities, the combined group will benefit from positive synergies by building on eQS’s disability services division, which provides specialist assistive technology equipment, software, training and mentoring in the education, workplace and government sectors.

EGS will add £1.7 million of revenue and c. £250K of EBITDA to the Group and will increase the number of employees to c.80 in addition to 350 freelance psychologists, consultants, trainers, and delivery engineers across the UK. This acquisition, combined with the completion of two recent acquisitions, strongly positions eQS to achieve £30 million turnover by 2023.

The acquisition financing was arranged by Shard Credit Partners as part of a committed £12 million senior secured unitranche facility provided in December 2020 in support of the primary MBO of eQS and to provide firepower for strategic acquisitions.

Andy Gough, CEO of eQS views this acquisition as being pivotal to the group’s ‘buy-and-build’ growth strategy and in becoming the leading global provider of Diversity and Inclusion (D&I) solutions. Andy commented: “The past couple of years have not only seen a global health crisis but also an awakening regarding inclusion and acceptance of individuals identifying with a cognitive disability. This has created an even bigger demand for cognitive disability assessments within both the educational and workplace settings.

EGS is a leader in this market and quickly became our top choice for our next acquisition due to its capability and outstanding reputation. Upon first meeting with EGS founder Alex Griffiths, it was clear EGS is a strong strategic fit for the Group, aligning with our purpose and mission. I believe we share a mutual passion for helping people achieve their best by removing barriers. I am looking forward to welcoming the EGS team into the eQS family and believe we will achieve great things together.”

EGS founder Alex Griffiths said: “I have had many organisations interested in acquiring EGS over the last couple of years but eQS was the only acquirer I seriously considered for the business.  The eQS team stood out as down to earth people who understood what we were about and demonstrated a clear passion for looking after the EGS brand and developing it in the ‘EGS way’.  There was a synergy between our business culture and values, and a very obvious desire to look after the exceptional team who have helped us create this legacy of doing good and unlocking potential.”

Alastair Brown, CEO of Shard Credit Partners, commented: “We are pleased to continue to support our investment in eQS with additional funding to complete this important acquisition. As a lender we are very focused on supporting the environmental, social and governance agenda and very much look forward to the ongoing growth and development of eQS and EGS as they move together continuing with their great work.”

Advising eQS on the acquisition were Corporate Financiers Carl Swansbury, Rhiannon Nightingale, Connor McBride and Ben Kain of Newcastle-based RG Corporate Finance (RGCF), with financial and tax due diligence delivered by Grahame Maughan and Simon Whiteside of RG.

Legal advice was provided by Corporate Partner Tom Pollard and Corporate Solicitor Liam Stubbs of Ward Hadaway LLP.

Shard Credit Partners’ strategy is to become a leading provider of capital to entrepreneur and management-owned companies, VC backed growth businesses and private equity-owned companies focused on achieving transformational growth and expansion in the UK regions. During the past four years, Shard Credit Partners has invested more than £130.0 million in supporting regional Management Buy-Out transactions and M&A buy-and-build acquisition strategies, as well as growth capital expenditure financing.

About Shard Credit Partners:

Shard Credit Partners Ltd is an alternative investment fund manager focused on private credit strategies in the UK lower mid-market.  Its funds seek to generate superior risk-adjusted returns from conservatively structured senior secured credit investments with equity upside. Fund strategies include direct lending and tech-focused venture debt.

Shard Credit Partners is currently investing from its debut direct lending fund Shard Credit Partners Fund I, which held a first close in October 2017 at £90.2 million.  Shard Credit Partners plans to hold a first close on its second UK lower mid-market direct lending fund during Q1 2022.

Shard Credit Partners invests in solid small to medium sized businesses with strong management teams, supporting them by providing transformative growth capital and event driven financing in support of innovation, growth and expansion.  The fund invests in businesses across all sectors and throughout the UK.

The firm has a robust ESG focus; in particular, it is a strong supporter of female entrepreneurs and firms with meaningful female leadership, ownership and senior management.

Recent investments include the venture debt refinancing of PassFort Limited in May 2021, the venture debt financing for Rezatec Limited in August 2021, the financing in support of the acquisition of The Technology Group by Gradwell Communications in March 2021, as well as the refinancing and shareholder reorganisation of Midwest Mechanical and Electrical Services Ltd in August 2021. The fund completed financing transactions for the MBI of JST Services Ltd in Scotland, the MBO and buy-and-build strategy of eQuality Solutions Ltd in the North-East of England, and the MBO of Chameleon Technology Ltd in Harrogate, North Yorkshire, each of which completed in December 2020.

In 2020, Shard Credit Partners ranked eighth in the Debtwire UK Direct Lender league table published by Acuris. Shard Credit Partners was recently awarded Alternative Finance Provider of the Year 2020 (North-east region) in the Insider Dealmakers Awards.

Shard Credit Partners Ltd is an Appointed Representative of Shard Capital AIFM LLP, authorised and regulated by the FCA (number 615463).

 

 

 

Contact details:

Newgate Communications

 

 Tel: Elisabeth Cowell / Robin Tozer / Isabelle Smurfit

Email: shardcapital@newgatecomms.com
Shard Credit Partners Investor relations:   IR@shardcreditpartners.com

Business:    info@shardcreditpartners.com

Website:    www.shardcreditpartners.com