What types of equity funding can we offer?

We have the advantage of being a firm owned and managed by its Partners and this gives us a very straightforward operating model, which in turn enables us to offer flexible funding solutions to suit ambitious management with plans to grow.

We can offer equity investments of £3m to £15m for management buy-outs, equity release transactions and to support organic or acquisitive growth.

What is a Management Buy-out?

We’re always ready to back ambitious management teams who have the drive, determination and vision to build value in their business.

You will no doubt have credible and ambitious plans for the business you are managing, but if your owners aren’t supportive, they won’t become a reality. We can provide equity funding to support you in buying your business from the current owners, known as a ‘management buy-out’ or ‘MBO’.

We can offer cash to buy-out shareholders, be that corporate or private owners who are no longer active in the business and may be looking to realise their investment.

We have completed a number of transactions where we have acquired businesses alongside the operational management team, where we provide the majority of the funding but share in the rewards going forward with management through equity participation.

An MBO puts you in control of your business and enables you to share in the rewards of its success. We have funds available and we’re an experienced deal team, so decisions can be made quickly. We’ll support you through the whole process of the transaction and introduce experienced contacts and operational specialists if needed.

What is an Equity Release?

Your company is growing but you’re concerned that most of your wealth is tied up in the business?

Key can invest alongside you, releasing part of your value so you can de-risk, while at the same time partnering with you to continue the growth of the business.

Key can also purchase shares from shareholders who aren’t active in the business or have differing financial or business objectives to you, refreshing the shareholder base and ensuring that all shareholders are focussed on the same end goal.

One situation where Key have successfully invested a number of times, is the provision of capital to partially de-risk a shareholder’s position, but then re-incentivise them with equity to enable them to continue to benefit from the company’s growth.

This type of solution allows owners to continue to run and retain equity in a business alongside Key and therefore benefit financially, both at the time of the initial de-risking deal, but also at a further sale in the future. Often business owners are unaware that this is a viable solution and will mistakenly believe that they need to sell to a trade buyer to realise any value.

An example of this type of deal is Key’s investment in WHP, where the three founders realised part of their consideration but then reinvested the remainder of their proceeds and took new equity going forward. As the business grew, they were then able to repeat this on two further transactions whilst continuing to run the business.

What is Development Capital?

An injection of equity can be what a business requires to breakthrough a glass ceiling and move to the next level. Key can provide patient capital to accelerate the growth of your business and in addition give you access to our experienced team to help you refine and execute your strategy. We have had success backing both organic and acquisitive growth strategies and are keen to do so again.

We recognise that when businesses are looking to expand and build value, they need an empathetic, trusted and proactive partner. You’ll really appreciate the difference of engaging with Key.

We can offer businesses cash for expansion, product development, geographical development or provide finance to fund acquisitions.

This capital will be structured in a way that suits the business and provides the headroom required to allow the company to grow and breathe and continue to invest in people, systems, products and services.

If equity funding is something you would like to learn more about, please don’t hesitate to get in touch with us.