Umbra Capital, a one-year old London-based merchant bank, provided a USD20 million equity portion in a USD270 million funding round in socially responsible capital app Hastee in December.
Umbra Capital, a one-year old London-based merchant bank, provided a USD20 million equity portion in a USD270 million funding round in socially responsible capital app Hastee in December.
Gustavo Diquez, managing partner at Umbra, told Private Equity Wire the firm wants to keep a focus on socially responsible investing going forward, as there’s appetite from investors and family offices in particular, as well as an interesting overlap with new technologies.
Headquartered in London, Umbra Capital comprises seasoned financiers Mark Gallagher, Gustavo Diquez, Steve Clark, Marcos Jorge Leon, John Travis and Charles Gallagher-Powell.
L-R: Gustavo Diquez, Mark Gallagher and Charles Gallagher-Powell, Umbra Capital
The group is now considering a number of deals within the ESG sector, including fuel-based renewables. The wider investment scope is industry agnostic, however, it will target companies with an EBITDA multiple of 2.5-5, and a specific focus on fintech.
‘Modern merchant bank’ Umbra Capital Partners opens for business in London
The team has experience across private equity, private debt, investment banks, hedge funds and family offices. Backed by families and long-term investors, it will provide advisory services, data and access to capital.
Umbra has been established to fill a gap in the UK lower mid-market. “We want to support the lower and midmarket in the UK. There’s a lot of opportunities at the moment; a lot of capital having been raised. There’s still a massive opportunity to provide capital that UK SMEs wouldn’t have access to otherwise,” says Diquez.
He adds: “There’s a disconnect between good companies seeking capital and the capital providers. We’re also helping investors outside the UK to get access to UK companies. They often prefer to invest directly.”
The group arranged the GBP200 million bespoke debt facility for Hastee, a fintech that allows employees an advance of up to 50 per cent of their earned pay on demand via its award-winning app, last month.
Other deals include HoteMap, a hotel booking technology platform for conference delegates; financing the acquisition of PinLocal by When You Move, a tech-based conveyancer; restructuring and MBO financing for Child &Child, a specialist law firm established in 1850s, and providing strategic advice to Rogue Projects on hearO, a portable speaker housed in a repurposed championship tennis ball.
“The merchant banking model was popular a few years ago, before virtually disappearing. As a firm, we have reinvented a modern version of the concept that is tailored to suit companies, private equity and debt funds and institutional investors seeking direct access,” says Diquez.
