Towry Group, a portfolio company of Palamon Capital Partners, has concluded a transaction with Macquarie Bank and Royal Bank of Scotland, to provide a GBP47.3m financing package.
The proceeds of the debt issuance, which comprised GBP42.5m of senior and junior loans provided by Macquarie and GBP4.8m of additional senior debt provided by RBS, one of Towry’s existing lenders, were used to replace a mezzanine debt facility.
Towry is a growing independently-owned wealth advice business in the UK with GBP4.6bn of assets under management. Since Palamon’s initial investment in 2003, revenue has grown more than 35 per cent per year. The company provides fee-based financial advice and discretionary asset fund management services to more than 25,000 clients.
Daan Knottenbelt (pictured), partner at Palamon Capital Partners, says: “The improved efficiency of the capital structure of Towry is a testament to the strength of its business, which since our initial investment has grown assets under management by almost 40 per cent per year to GBP4.6bn through a combination of organic growth and strategic acquisitions. The financing structure provides a sound basis from which further expansion can take place to continue the company’s high rate of profit growth and solidify its position as a national leader in the IFA sector.”
Florian Herold, co-head of Macquarie European Lending, says: “We believe Towry is a well-regarded, high growth company with strong recurring revenue streams. Working closely with the management team at Towry and Palamon, we are delighted to have been able to develop and put in place a financing structure that meets their specific needs.”