Spring Ventures invests £20m in BIMBO of IGF

Kenny Wastell
13 April 2016

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Spring Ventures has committed ТЃ20m towards the buy-in management buyout (BIMBO) of UK commercial loans provider IGF Invoice Finance from Greater London Enterprise.

The funding will be structured as a £9m equity investment, with £11m in follow-on capital to be injected over a three-year period.

Upon completion of the transaction, the company will increase its headcount and look to expand across the UK.

As part of the deal, IGF has appointed Octopus Investments chairperson and Capital One Bank co-founder Matthew Cooper as its new chairperson. Spring Ventures managing partner John Hudson will also take a seat on the board.

The deal marks Spring Ventures' first foray into the financial services market, having primarily invested in the industrial and healthcare sectors to date. In March, the GP backed the management buyout of HFH Healthcare, investing £10.6m for its majority stake.

Company
Founded in 1997 and headquartered in Tonbridge, Kent, IGF is a provider of commercial loans to UK SMEs with revenues of up to £100m.

The business provides financing of up to £5m, which is advanced against outstanding invoices. It has a portfolio of 200 clients, a loan book of £20m and a headcount of 38.

People
Spring Ventures – John Hudson (managing partner).
IGF – Matthew Cooper (chairperson); John Onslow (CEO).

Advisers
Vendor – Clearwater (corporate finance); MBM Commercial (legal).
Company – Shoosmiths (legal); RSM (financial due diligence); Ashcombe Advisers (commercial due diligence).
Management – SamCorp (corporate finance); Fox Williams (legal).