The four year loan facility will enable the management of CBC to co-invest in the Clyde Blowers Capital Fund III (CBC Fund III).
The target fund size of CBC Fund III is £350m with a hard cap of £400m. A second close is planned for later in the year. This will allow CBC to pursue the strong pipeline of deal opportunities it continues to build.
CBC Fund II, a £250m fund raised in 2008, is now over 90% invested. The first divestment from CBC Fund II, the disposal of Clyde Union Pumps to SPX Corporation, was announced last month.
Headquartered in Glasgow and with offices in China, CBC was founded in 1992 and now incorporates 83 companies operating in a total of 27 countries, employing approximately 5,000 staff.
Simon Hamilton, Investec Fund Finance, said:
“The management team at CBC has a fantastic track-record of growing companies and exiting investments, or parts of them, at the optimal stage in their life cycle.
"Our loan facility will enable the management team to personally invest more in the fund which not only leads to a stronger alignment with their investors but also helps them to benefit from their performance.
"This transaction highlights our flexible funding solutions and the innovative approach we offer to the investment community
“We are delighted to be working with CBCs to support its expansion plans and ensure its staff are able to participate in the long term success of its investment programme.”
Keith Gibson, Managing Partner, Clyde Blowers Capital said:
“The Investec team has a real understanding of the requirements of our business and the structures that we are subject to.
"We have been impressed by Investec’s commitment to backing our expansion plans and developing innovative financing solutions.”
The Investec Fund Finance team focuses on the financing needs of leading private equity funds and the professionals behind them. Investec offers a broad range of financing facilities tailored to the unique requirements of the private equity sector.
Typically, the loan sizes are greater than £5 million and can extend to between £50 million and £75 million at the higher end. The loans are usually structured against the private equity investments, management company cash flows or investor commitments.
