finnCap Capital Markets is delighted to have raised £10m for longstanding client Frenkel Topping Group, a specialist professional and financial services firm operating in the Personal Injury and Clinical Negligence space. The addition of two new sizeable institutional investors in current market conditions alongside continuing support from the Company’s existing shareholder base demonstrates our focus on providing outstanding client service.

finnCap Cavendish advises shareholder group on majority stake sale in London & Capital to Lovell Minnick

•             finnCap Cavendish provided advisory services to the Freedman family, shareholders in London & Capital, on their majority stake sale to Lovell Minnick

•             London & Capital is one of the UK’s leading independent wealth managers, focused on US family office, private investment office and institutional clients

•             Sold to Lovell Minnick, a US-based private equity firm focused on financial services, financial technology and related business services

finnCap Cavendish, part of finnCap Group plc, is pleased to announce it has advised the Freedman family shareholders in the majority sale of their stake in London & Capital Group Limited, one of the UK’s leading independent wealth managers, to Lovell Minnick Partners, the US-based private equity firm focused on investments in financial services, financial technology and related business services.

As part of the transaction, London & Capital’s management team will continue to run the business and retain a significant minority stake.

Founded in 1986, London & Capital has three specialist franchises focused on US family office, private investment office and institutional clients. The business has a differentiated and highly scalable investment process, deployed across all three franchises, and coordinated by a 12-strong investment desk.

The investment with Lovell Minnick will enable the business to expand its client solutions, grow internationally, invest in technology and bring on new teams. 

The deal was led by Lord Leigh of Hurley, Senior Partner and Ben Goldring, Head of Financial Services.

Elaine Freedman, shareholder of London & Capital, commented:

“We are delighted to have achieved this result for the business that Daniel Freedman co-founded and found such a strong partner in the form of Lovell Minnick for the next stage of its growth. Howard and Ben were an excellent support throughout this process, and provided us with first class advice and guidance throughout.”

Guy McGlashan, Chief Executive Officer of London & Capital, commented:

“We chose to partner with LMP because of the firm’s excellent track record of working with management teams to scale and enhance wealth and asset management firms. Their deep experience in the space and our sense of shared values and culture align with our focus on providing an exceptional service and experience for our clients.”

Ben Goldring, Head of Financial Services at finnCap Cavendish, commented:

“It has been a pleasure advising the Freedman family and working with the management team on this landmark transaction. 2022 has already seen several major acquisitions in the wealth management space and the long-term market dynamics remain highly compelling with strong forecast growth of both the number of global HNWI and onshore wealth segments over the next few years. I look forward to seeing London & Capital flourish in their new partnership with Lovell Minnick.”

finnCap Cavendish, part of financial advisory firm finnCap Group plc, is pleased to announce it has advised on the sale of Sentenial Group and its open banking brand Nuapay, a leading end-to-end payments platform specialised in account-2-account transactions, to EML Payments, an Australian-listed payments technology company for €108 million.

Through its regulated subsidiary Nuapay, Sentenial operates in the fast-growing European-open banking sector. The Group powers a complete set of payments for credit transfers, direct debits, instant payments and open banking. Over €44 billion worth of transactions is processed annually across 37 countries, with some €1/4 trillion processed to date.

Under the Sentenial brand, the Group’s original SaaS business model provides white-label use of its payment processing technology to banks and corporates. Nuapay combines Sentenial’s bank-grade payments platform with regulated services in a next-generation alternative payments and open banking solution.

With open banking set to fundamentally change the way we move money over the next decade, the EML – Nuapay product proposition combines open banking data enrichment with instant account payment capability to create a modern friction-free digital user experience.

The deal will see EML acquire 100% of Sentential to form EML Nuapay.

Ben Goldring, Director & Head of Financial Services at Cavendish, commented:

“It has been a pleasure working with Sean, Brian, Nick and the team at Sentenial and Nuapay. They have built a leading fintech group with bank-grade payments and an open banking platform built for the future. The online payments sector is fast-moving and highly active, and I’m hugely excited to build on Cavendish’s considerable experience in this space with this landmark transaction.”

Tom Cregan, CEO of EML Payments said:

“By combining Sentenial and EML’s capabilities we will create a world-first platform, offering customers the ability to send and receive real-time bank account payments and transactional banking data, and establishing EML as a full-service payments business.”

finnCap Capital Markets is delighted to have advised K3 Capital Group plc in their placing of £10.0m in order to fund the acquisitions of Knight Corporate Finance (CF) and Knight R&D Limited.

Knight CF is a sector-specific corporate finance boutique advising clients in the technology and telecoms sector, while Knight R&D provides recurring, contracted revenues over a three-year cycle, and both Knight businesses will provide further diversification within K3’s existing divisions by permitting expansion of sector specialisation and size of client.

Jonny Franklin-Adams, Co-Head of Corporate Finance, comments: “A year after we last raised K3 Capital £30m to execute on two transformational acquisitions, where in the intervening period they have successfully upgraded their forecasts in the market four times, we are delighted to have once again help the team at K3 Capital raise some more equity to help them complete on more accretive transactions.”

finnCap Debt Advisory supports K3 Capital Group plc on securing its maiden debt facility.
 
K3 Capital Group plc (“K3” or the “Group”), a multi-disciplinary professional services firm providing advisory services to SMEs, is pleased to report the Group has secured total available debt facilities of £15m from HSBC through a new £10m committed revolving credit facility with an approved, but uncommitted, accordion facility of up to £5m.

Andy Melbourne, CFO, K3: “We are delighted with the support of the finnCap Debt Advisory team in securing our maiden debt facility with a new banking partner. To date, the Group has been supported by its shareholders and its own cash generation in delivering the Board’s vision. The new debt facility represents an important evolution of our capital structure, creating more flexible funding options as we consider further strategic acquisitions, in line with our ongoing growth strategy.”

Alistair Hay, Partner, finnCap: “This transaction represents an important milestone for K3 as they diversify their M&A funding options via the new debt facility. We introduced a local HSBC team to K3 early in the process and are delighted the Bank was able to deliver the desired quantum and structure on attractive terms.”

Cavendish Corporate Finance, the UK’s leading mid-market M&A firm and part of the finnCap Group, has advised equity release specialists Responsible Life and Responsible Lending (the Responsible Group) on the sale of a 30% stake to Royal London.

Based in Plymouth and founded in 2010, the Responsible Group is a leading broker and correspondent lender in the later life lending (equity release) industry, with a number of leading distribution partnerships including Aviva and the Telegraph Media Group. Its pioneering ‘Later Life Lending’ scheme is the most compliant form of addressing equity release, with market-leading systems and controls adhering to exceptional conduct standards.

For Royal London, the UK’s largest life, pensions and investment mutual, the acquisition will offer participation in one of the fastest growing markets in financial services. The later life lending sector offers alternative options to those at retirement age who hold equity in their properties and who wish to supplement their pensions saving.

The equity release market, offering a high-yielding alternative asset class for investors, has seen an increased flow of funding recently, with later life lending products set to become a widespread feature of financial planning for an ageing population.

The Responsible Group was advised by Cavendish, led by Partner and Head of Financial Services, Duncan Chandler.

Duncan commented:

“It was a tremendous pleasure to work for Steve and Paul, as Responsible is a first class business and a pioneer with a terrific future ahead of it. Royal London will be a great partner to support and indeed further boost its growth trajectory, in one of the fastest growing sectors in financial services.”

Cavendish Corporate Finance, the UK’s leading mid-market M&A firm and part of the finnCap Group, has advised long-established recovery and insolvency firm David Rubin & Partners on its sale to Begbies Traynor Group for a maximum consideration of £25m.

Established over 35 years ago and with offices in London and Guernsey, David Rubin & Partners is a well-respected name in the recovery industry. It specialises in business turnarounds, corporate and personal insolvency and has a successful track record working across all sectors with clients of all sizes, from large organisations with international reach to SMEs and individuals. David Rubin & Partners is recognised for its high calibre and a full suite of services providing a one-stop-shop in the recovery market.

For Begbies Traynor Group, the acquisition is the largest the Group has undertaken to date, coming quickly after its acquisition of insolvency practitioners CVR Global. The deal delivers a significant increase in scale of its business recovery and financial advisory business, with a material increase in the Group’s size in the key London market.

The insolvency and recovery market is typically counter-cyclical, though volumes are steady even in prosperous times making the insolvency practitioner model highly robust. A complex regulatory and macroeconomic environment, coupled with the current pandemic, will be key demand drivers for advisory services in the sector.

Cavendish advised end-to-end on the deal and is further evidence of its strong Financial Services offering. The deal was led by its former Managing Partner and now Consultant, Joe Stelzer.

Joe Stelzer, Cavendish Corporate Finance, commented: “We are thrilled to have advised on this transaction. David Rubin & Partners is one of the most highly regarded names in the industry and is led by an experienced partner group that is committed to the future development of the business. We are confident they will work together well with the senior team at Begbies Traynor Group ”

Paul Appleton, Managing Partner at David Rubin & Partners said: “The Cavendish team led by Joe Stelzer and supported by Chirag Gohil did an outstanding job in identifying Begbies as a perfect home to drive our future growth. Cavendish negotiated an excellent deal and provided invaluable guidance to us through the process.”

Ric Traynor, Executive Chairman of Begbies Traynor Group plc, commented: “This acquisition is our largest to date and is expected to be immediately earnings enhancing. It leaves the group well-positioned to increase its market share and continue to grow its business recovery and financial advisory revenues.”

finnCap Group have advised K3 Capital Group plc on its £30.45m fundraise and its acquisitions of randd uk ltd, which advises clients on Research and Development Tax Credit (RDTC) claims, for an initial consideration of £9.27m, and restructuring and advisory firm Quantuma for an initial payment of £26.95m.

These acquisitions represent highly complementary additions to K3’s service offering and we look forward to working with our client on its exciting new growth journey.

Jonny Franklin-Adams, Co-Head of Corporate Finance, finnCap Group, commented: “The fundraising and associated acquisitions are testament to the management’s ambition and drive to create a diversified financial services group. We are confident that their meticulous attention to detail will now ensure that a flawless integration plan is executed for the benefit of all stakeholders.”

Tony Ford, Executive Deputy Chairman, K3, commented: “From start to finish we could not have done this without your support and guidance and the tenacity of the sales team over last few days of the roadshow showed the passion of finnCap at its absolute best. Each of you have gone the extra mile- well done everyone and take a well-deserved pat on the back. From the bottom of our hearts - a great big ‘thank you’.”

finnCap have raised £13m for Frenkel Topping Group Plc, a specialist independent financial adviser and wealth manager focused on asset protection for its clients.

The oversubscribed fundraise will allow the Company to execute its M&A roll-up strategy, consolidating the heavily fragmented pre-settlement professional services marketplace in the Personal Injury and Clinical Negligence arena.

Carl Holmes, Corporate Finance Director, finnCap Group, comments: “We are delighted with to have helped Frenkel Topping raise £13m to execute its ambitious acquisition strategy. It was a well-supported fundraise and will add some excellent new investors to the Company’s share register. The Company is now very well positioned to consolidate the Personal Injury and Clinical Negligence arena and finnCap is very pleased to be advising such an ambitious Company and management team."

finnCap have advised KRM22 plc (AIM: KRM), the technology and software investment company, on their £1.3m placing.

finnCap's Debt Advisory Team is pleased to announce that it has advised Morses Club PLC (“Morses Club” or “the Group”) on securing an extension of its revolving credit facility (the “RCF”) with its existing funding syndicate until the end of November 2021.

Morses Club, an established provider of non-standard financial services, has agreed a reduction in the level of the facility from £50 million to £40 million to better reflect the requirements of the business over the next 18 months as it anticipates some deleveraging of the business driven by decreased sales volumes due to COVID-19. In the last year this additional £10m headroom has not been used. Facility levels that better reflect the near term needs of the business are expected to reduce funding costs, with the Group’s higher interest rate mezzanine debt facility now fully repaid and lower non-utilisation costs on the RCF facility expected.

Paul Smith, Chief Executive Officer of Morses Club, commented:

“I am delighted that we have secured a new loan facility and that our three existing funders continue to support the business during this challenging period, demonstrating their confidence in Morses Club and our growth and digital diversification strategy. The new loan facility provides us with sufficient funding to meet our requirements including expanding our product offering as we address the evolving needs of our customers.”

Alistair Hay, Partner and Head of Debt Advisory at finnCap, commented:

“The successful refinancing of Morses Club’s existing debt facilities is a testament to the strength of the underlying business model against a backdrop of increasing market uncertainty. The new facility is right-sized for the needs of the business, simplifies the debt structure, lowers the Group’s cost of capital and provides a robust platform for the Group going forward. In the current climate, it is also encouraging that existing lenders are engaging with and supporting their clients with their financing needs.”

Cavendish, part of finnCap Group, has advised HFMC Wealth on securing debt facilities to facilitate the acquisition of Aspinalls Group.

David Aspinall, founder and Executive Chairman of Aspinalls Group, said: “To ensure continuity for our clients, it was vital that any such partner shared our values and those of our clients, whilst mirroring our approach to wealth management. I wanted to have complete confidence that our clients would continue to receive high-quality ongoing advice and service for as long as they need it.

“In HFMC Wealth we have found a partner that meets all these requirements and who will protect the legacy of the business we are proud to have built over the last 38 years.”

The purchase of Aspinalls adds assets under management (“AUM”) of over £130m and brings total AUM for the Group in excess of £1.4bn. The acquisition represents a return to M&A for HFMC following their previous acquisition of Generic Financial Management (in October 2018) as management continues to progress their ambitious growth strategy with further acquisitions expected to add new products and future expansion.

Senior debt facilities were provided by ThinCats to refinance an existing Natwest facility and also fund the Aspinalls consideration.

Dave Sherrington, Regional Head of Sales at ThinCats, said:

“We are delighted to have worked closely with finnCap Group to create a funding solution to support HFMC with its growth plans. Wealth management is a long-term growth sector and HFMC is well-placed to benefit. We look forward to supporting them in the years ahead.”

Alistair Hay, Partner and Head of Debt Advisory at finnCap Group, commented:

“We are grateful for the opportunity to work with Jeremy and his team on financing this important acquisition. In ThinCats, the Group has a supportive, long-term financing partner who invested the time in understanding the business and tailored a debt structure accordingly. We look forward to working together with both parties in the future.”