Carta Capital reaps 14-18% IRR on three exits

Susannah Birkwood
29 July 2011

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Lower mid-market mezzanine investor Carta Capital has exited three of its investments, each reaping an IRR of 14-18% and a money multiple of 1.6x to 1.8x.

The exited businesses were Hobbs, Refresco and Kurt Geiger.

Hobbs, established in 1981, is a major UK-based retailer of ladies clothing, shoes and accessories. Since Carta provided part of the mezzanine financing for the buyout in September 2006, the company has increased the number of stores and concessions it operates throughout the UK, strengthened its brands and expanded its product offering. Carta still retains a warrant over part of the firm's equity.

Refresco, meanwhile, is the largest European manufacturer of private label juices and still drinks, supplying major retailers and discount chains such as Lidl and Aldi. Carta provided part of the mezzanine for the buyout by 3i in February 2004 and again for the subsequent buyout by Kaupthing Singer & Friedlander in 2006.

Lastly, Kurt Geiger is a major European multi-channel retailer of luxury branded shoes and accessories with outlets in London, Paris and Milan and sales of more than 1.5 million shoes per year. Carta Capital provided mezzanine for Graphite Capital's buyout of the firm in March 2008.