Capital raising can take a number of forms and can be for a variety of reasons. The most usual form is by way of a placing of shares for equity with a private equity institution. The equity raised is generally utilised for three main purposes:
- To correct/strengthen the financial base of the business by paying down some debt and replacing it with equity.
- To raise funds for a predominantly equity risk, which might be an acquisition or new product development. It is often difficult to raise bank debt for an event where the outcomes are not certain and are therefore considered to be a risk for the equity providers, where higher returns can be generated.
- To de-risk the shareholders by raising some ‘money out’ by the sale of some of their shares to a professional investor. The ongoing commitment of the shareholders and their rational for the de-risking needs to be carefully presented to the incoming investor.
We will work with you to achieve the objectives of the shareholders and to present the business, the market and its key drivers in the best light for potential investors. We can add value in all of the above situations, given our broad skill set and extensive knowledge of the private equity market.
"We would like to thank Spectrum Corporate Finance for supporting us raise the necessary funds to deliver our roll-out programme and acquire The Light Cinema in Cambridge. This was a complex deal, requiring the coordination of the funding partner, banking facilities, the Competition and Markets Authority and a national cinema chain. Spectrum remained diligent and dedicated to the task at hand and helped us reach a successful outcome. We look forward to working with Spectrum again as the business develops from here."Keith Pullinger, Founder, The Light
Rush Hair & Beauty
Thomas J Fudge's
- Sector: Real Estate
- Deal type: Capital Raising, Debt Advisory
- Deal size: £25m
- Deal team: Ian Milne
- Year: 2014
- Sector: Consumer, Retail and Leisure
- Deal type: Capital Raising, Debt Advisory, Management Buy-Outs
- Deal size: £15.9m
- Deal team: Simon Davies
- Year: 2013
The Training Room
- Sector: Education
- Deal type: Capital Raising, Company Sale – Family/Private
- Deal size: £30m
- Deal team: Clive Hatchard
- Year: 2013