Strand Hanson, the independent advisory-led, merchant bank, has appointed Lek van Cruyningen and Naiem Hussain to lead a new division, Strand Ventures.
Strand Ventures specialises in advising and investing in early stage companies and larger private companies, primarily in the natural resources, agriculture, energy, technology, healthcare, and chemical sectors.
Strand Hanson’s advisory team are introduced to a significant number of businesses each year looking for growth capital, which are not necessarily yet at a stage to undertake a stock market listing, and which are therefore seeking access to private equity and pre-IPO funding. Strand Ventures has been established to identify the best of these companies to advise and source funds ranging from GBP5 million to GBP100+ million, both debt and equity, to allow these companies to grow and prosper. Through London, and particularly through Strand Hanson’s South African offices (where the team sees a large number of natural resource companies), the Strand Hanson has access to highly relevant deal flow.
With the establishment of Strand Ventures, it now has access to expert fundraisers to meet the needs of these companies. Whilst Strand Ventures will have the ability to draw upon Strand Hanson’s balance sheet to fund opportunities, the majority of funding will be sourced from major external funders, with which Iek and Naiem have strong, long-term relationships.
Commencing operations in April 2012, Strand Ventures is already progressing with a number of investments; including a private fundraise for an African agriculture play, which is expected to close in Q2 2012.
Simon Raggett (pictured), Chief Executive of Stand Hanson says: “We are delighted that Iek and Naiem have joined us, they have exactly the right experience and track record needed to develop Strand Ventures. This is a logical extension of our business, since we currently see a substantial number of excellent companies who are ideal candidates for the types of funding that Strand Ventures can provide. We already have the deal flow and can also provide further value-add advisory services as investee companies develop.”
Hussain says: “The fact that access to capital for young, entrepreneurial businesses is challenging is not novel – the pool of funders in this market segment has shrunk, which means there are a greater number of good opportunities vying for funding. We are confident that, through Strand Hanson’s deal flow connections in London and South Africa and our strong relationships with funders of early stage businesses and larger private companies, we can develop an exciting new business, with the expectation that many of these companies will ultimately seek a stock market listing as they progress.”