Synova-backed Defaqto refinances

Kenny Wastell
05 December 2017

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Synova Capital portfolio company Defaqto has refinanced its debt package with existing lender HSBC.

The transaction will enable Defaqto to repay shareholder debt and provide it with additional capital to be invested in its growth strategy.

According to a statement, the business has increased its revenues strongly since Synova supported its SBO from FF&P Private Equity and Foresight Group in March 2015. According to publicly available documents, Defaqto generated a turnover of £12m with EBITDA of £4.3m in the year to July 2016, up from £8m and £800,000 in the year prior to the GP's investment.

The company has undertaken a purely organic growth strategy under Synova's tenure, though managing partner Philip Shapiro told unquote" Defaqto would consider potential bolt-on acquisitions, should the correct opportunity present itself.

Previous funding
FF&P initially acquired Defaqto through portfolio company Find Portal, which purchased Defaqto parent The Independent Research Group in September 2006, according to unquote" data.

Foresight became a shareholder in the company in 2011 when the group took over Electra's two distressed Acuity Growth VCT funds, one of which was a shareholder in Defaqto.

Synova then backed the management buyout of the business from previous backers FF&P Private Equity and Foresight Group for £24.25m.

Company
Founded in 1994 and headquartered in Haddenham, Defaqto provides information on financial services products. It operates a retail financial product and fund database, which collects data from across the market and enables comparisons. Dafaqto creates products and services based on its data analysis, including ratings, software solutions, publications and events.

The company is best known for its rating services, often used by large banks and insurance companies to market their products to consumers.

People
Synova Capital – Philip Shapiro, David Menton (managing partners).
Defaqto – Zahid Bilgrami (CEO).