Hoskyn Child International
and Hyde Consulting are launching a new form of mezzanine funding
aimed squarely at the £250,000
- £5m funding bracket for commercial and professional companies.
A joint venture company trading as Janus Venture Finance has
been formed on the back of a highly successful trial period,
during which time a series of mezzanine funding advances were
made. These included:
- An advance of £350,000 for
a nine-month period to a medium sized legal practice based
in the South East of England, which was secured on Work in
Progress.
- The purchase
of an UK based company in receivership - an
advance of £750,000 for a 6-month period secured on
an all asset debenture and an equity stake.
- A twelve-month bridging
facility for a medium sized utility sector supplier- an advance of £1.1m
secured on intellectual property and an equity stake.
- A manufacturing
joint venture with a Chinese based partner financed through
a revolving credit facility capped at £1.2m
over 12 months - secured on orders and stock.
- An UK and China
joint venture partnership with an investment on plant
and machinery of $5m, amortised over 3 years.
- A rolling salary bank
facility of £180,000 for a medium
sized legal practice based in the UK - renewable monthly
and secured on the practice's corporate book debt.
Janus Venture Finance is aimed at a wide selection of businesses,
ranging from manufacturers through to professional firms. It
will provide mezzanine funding on a short to medium term basis,
ranging from 3 months to a maximum of 364 days.
Hoskyn Child's chairman Jonathan Wooller said:
"The evaluation for the advances made
takes into account a far broader scope of security available,
which traditional funders may not naturally consider. The security
we seek varies from the usual PG and debenture arrangements
through to charges over less traditional security such as work
in progress, intellectual property, all asset debentures and
order books."
In cases where there is perceived to be a higher than normal
risk and where assets are less substantial, indeed where the
debt is judged to be more difficult to recover in the event of
a default, Janus's advances may be supplemented by an equity
stake via ordinary shares or convertible options.
Each proposition is initially evaluated by Hoskyn Child International,
who have been appointed to appraise all enquiries. Hyde Consulting
will provide all the due diligence and contractual work required
to bring the deal through to fruition.
Hyde Partner Colin Ellis added:
"We aim to offer a flexible approach
to quality proposals, whether the funds are to be utilised
for acquisitions; MBIs; MBOs; consolidation; short term restructuring;
general business expansion; or indeed any worthy well planned
business activity."
"Whilst we do support acquisitions
from insolvency sources, we do not generally consider start
up business proposals as being suitable for our type of funding
structure. More often we look for businesses that have been
established for at least 12 months with a successful track
record, a sound product or service and, most importantly, a
good management team."
Janus Venture Finance will be officially launched in Spring
2005.
Notes To Editors:
1) For more information, or for pictures of Jonathan Wooller
and Colin Ellis, please contact Alan Brooks on 01322 424594
2) The Janus Venture Finance team will operate from offices
in London , Biggin Hill , Kent , and Sutton, Surrey .
3) For more information please visit www.janusventurefinance.co.uk
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