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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

 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 Secures Investment from Channel Capital to Boost Expansion in the GCC

LONDON, May 15, 2025 — Shard Credit Partners (“SCRP”), a UK-based private credit investment manager, has successfully secured an investment from Channel Capital Advisors LLP (“Channel”) in support of its trade finance activities, reinforcing its commitment to empowering growing corporates across the Gulf Cooperation Council (“GCC”) following the launch of its UAE operations last year. This investment will support the firm’s regional expansion, strengthening its trade finance capabilities and extending its reach across the GCC.

The funding, for an undisclosed amount, will be deployed to expand SCRP’s innovative trade financing solutions, enabling high-growth businesses to access much-needed capital in a rapidly evolving economic landscape. With this investment, the firm aims to strengthen its regional footprint and play a pivotal role in fostering corporate growth. The investment builds on the momentum of the UAE office opening in 2024 and positions the firm to capitalise on the region’s growing demand for structured trade finance solutions.

“This investment is a significant step in the expansion of our trade finance offering in the GCC. The UAE launch last year established our presence in the region, and this additional capital allows us to deepen our support for businesses navigating complex international trade flows.” — Chris Ash, Head of Shard Credit Partners Trade Finance

Channel, a global investment firm with a strong track record in structured credit and asset-backed lending, sees this partnership as an opportunity to drive further innovation in the trade finance sector and enhance liquidity for businesses operating across the GCC.

“This is another example that demonstrates Channel’s capability in providing investment within this sector. This opportunity combines our knowledge of financing the overall trade cycle with our experience of operating with businesses in this region.” — Tony Smedley, Director of Sales at Channel

Shard Credit Partners Trade Finance Ltd established its business in the UAE in May 2024 as part of its international expansion strategy and to address the funding gap for SMEs in the region. Since then, the firm has focused on structuring trade finance solutions that optimise working capital and mitigate risk for corporates operating across global supply chains. With this investment, SCRP will continue to strengthen its regional presence, expand its trade finance capabilities, and support the evolving capital requirements of businesses across the GCC.


About Channel

Channel provides high-quality, privately originated asset-backed investment products by originating, structuring, and managing investments for leading institutional investors. The firm specialises in opportunities from issuers in specialty finance and the innovation economy. For borrowers, Channel is a trusted partner in growth. Its expertise in structuring tailored financing solutions ensures businesses receive the capital needed to scale, with a streamlined process and terms designed to work for them. Channel is committed to delivering flexible, efficient, and growth-focused funding that empowers success.

Contact

Bhoomika Kesaria
Head of Investor Relations
Channel Capital Advisors LLP
+44 (0)20 7291 5160
investor.relations@channelcapital.co.uk


About Shard

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 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. SCRP is currently fundraising for its International Trade Finance strategy and is targeting to raise US$500 million from a mixture of institutional private credit investors, including local government pension funds, corporate pension funds, endowments, family offices and high net worth individuals classifying as sophisticated professional investors. SCRP has established a securitisation vehicle structure in Luxembourg which provides access to this strategy through the purchase of three or five year fixed income notes that will pay regular quarterly cash distributions derived from a diversified pool of short-term trade finance instruments. Investors further have the option of purchasing notes with an ISIN and or credit enhancement features including an investment grade credit wrapper from a reputable credit insurance provider. Investment portfolios tailored to meet the specific preferences and appetite of investors are available.

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

Contact

Benjamin Ellis
Business Development Director
Shard Credit Partners Limited
IR@shardcreditpartners.com

Business: info@shardcreditpartners.com
Website: www.shardcreditpartners.com

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

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

(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”