Positive Cash Flow Finance (United Kingdom) - Dec 2007

unquote
01 December 2007

Tweet
Facebook
LinkedIn
Google plus
Send to

Infinity Asset Management has invested £2m in invoice discounting and factoring start-up Positive Cash Flow Finance. Infinity’s investment has been supported by a debt package of £25m provided by Lloyds TSB which will be drawn down as and when Positive needs it. The deal was originated through a prior relationship between Positive’s founders and Infinity. Positive had received interest from other private equity funds and private individuals, but chose Infinity as it was capable of providing all the equity. Additionally, due to the nature of Positive’s business, Infinity and Positive will be able to share leads. Infinity launched in 2007 having raised £20m to invest in growth capital and buyout deals of companies with enterprise values of between £2-8m. The investment in Positive is not representative of the type of deal that Infinity intends to do, but was attractive due to the expertise of the founders which meant that Positive did not have the risk profile of a typical start-up.

Company

Manchester-based Positive was founded in 2007 by David Smith and Phil Chesham who were both previously at City Invoice Finance. Positive will focus on providing invoice discounting and factoring funds for growth, MBOs, MBIs, acquisition and financial restructuring. Its offering will target smallto- medium sized companies with enterprise values of between £5-12.5m. Positive currently employs 12 staff and intends to double this number over the next few months.

People

Daniel Finestein and Phil Vickers led the deal for Infinity and both join the board of the company.

Advisers

Equity - Halliwells, Paul Jefferson (Legal)Management - Lockett Loveday McMahon, Paul Lockett (Legal)

Sourced from: UK & Ireland unquote" 360 (Jan 2008)