Bowmark Capital, the mid-market private equity firm, is backing the GBP30m management buy-out and expansion financing of Drake & Morgan, a London-based bar-restaurant group.
Drake & Morgan was founded in 2008 by the Imbiba Partnership, the specialist bar and restaurant investment partnership, and managing director Jillian MacLean, a leisure entrepreneur who has over 20 years’ experience in the hospitality industry.
The vision was to create an innovative new chain of bar-restaurants in London that combined a stylish, accessible and “female-friendly” environment with a unique all-day food and drink offering.
Since opening its first site, The Refinery, in Southwark in late 2008, the company has added The Parlour in Canary Wharf, and three sites in the City – The Anthologist, The Folly and The Drift. Two additional venues are due to open later his year – The Happenstance in St Paul’s and a new site in Holborn – and the management has identified a further eight sites for opening over the following two years. Over the longer-term, the company plans to roll-out the concept nationwide and believes there is potential for up to 70 units across the UK.
Bowmark has committed further funds to support the roll-out strategy, alongside a debt package from RBS Financial Sponsors.
John Connell of Imbiba says: “This transaction is consistent with our ‘buy, build and exit’ business model. Drake and Morgan has now completed its ‘start-up stage’ following which the dynamics of the company will change and it is now time to hand over to new owners to move the company to a more mature level. This exit represents a truly excellent return for Imbiba Partnership shareholders and illustrates our consistent ability to deliver significant shareholder value. We have known Bowmark for a long time and have been impressed by their understanding and approach to the sector. I look forward to working with them during this transition period and seeing Drake & Morgan flourish over the coming years.”
Connell will continue in his role as chairman of Drake & Morgan post-transaction. He and his fellow Imbiba partners, Simon Wheeler and Mark Brumby, are retaining a minority stake, alongside MacLean and her management team.
MacLean says: “We are very excited about the next phase of our growth strategy and, with Bowmark’s support and financial backing, we look forward to accelerating the roll-out of the company, both in central London and in other locations across the country.”
