Mobeus sells stake in Advantedge for 30% IRR

The transaction is the first exit from Mobeus Equity Partners Fund IV, which held a final close on £166m in August 2017.

The firm reported a 2.7x return on the sale to ECapital, a US-based provider of alternative financial products and services to businesses. The acquirer is pursuing a buy-and-build strategy targeting providers of trade finance to SMEs. To date, it has acquired six US- or Canada-based businesses, with Advantedge being its first European acquisition.

Previous funding
Mobeus invested £9m in the MBO of the company for an undisclosed stake in 2016.

During the holding period, Advantedge secured a £100m syndicated funding line in 2018 from Lloyds Bank Commercial Banking and RBS to support its growth plans. It also completed a rebrand, launched two new offices – in Scotland and the Midlands – and acquired Henry Howard Cashflow Finance.

Company
Advantedge is a provider of invoice finance to UK-based SMEs looking to access funding for growth and working capital. Founded in 2001 and based in Wallingford, it operates five offices. It reported revenues of £9.9m in the year ending on 30 June 2020.

People
Mobeus – Guy Blackburn (portfolio partner).

Advisers
Vendor – Keefe Bruyette & Woods (corporate finance); PDT Solicitors (legal); Trowers & Hamlins (legal).

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• Topics
• Exits
• UK / Ireland
• Financials
• Mobeus Equity Partners
• Trade sale
• United Kingdom