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June 14, 2021updated 13 Jun 2021 10:52pm

Arbuthnot Commercial ABL hits £300m milestone

By Alejandro Gonzalez

Arbuthnot Commercial ABL, the asset-based lending division of Arbuthnot Latham, has reached £300m of facilities deployed within three years of its launch. 

The figure represents total facilities deployed for 66 mid-size SME clients since the business launched in May 2018.

In the last 12 months, Arbuthnot Commercial ABL has completed a total of £138m of transactions. 

These transactions ranged from acquisitions to management buy-ins, management buyouts, and corporate carve-outs for businesses, most notably in the British manufacturing and engineering industry and its supply chains.

55% of the asset-based lender’s transactions were private equity sponsored, and many of these deals benefit from structured facilities, comprised of both ABL and cash flow loans. 

In these hybrid debt structures, the cashflow loan contributes towards the initial transaction consideration, while the revolving ABL facility supports the increased working capital requirement associated with post-transaction growth.

There was also a substantial increase in the refinancing of traditional clearing bank facilities, as business owners sought a higher level of headroom, flexibility and support.

Since its launch, when the business had a team of seven, it has grown to 23 today. 

The business is accredited by the British Business Bank to provide the Recovery Loan Scheme (RLS) to provide UK businesses with ongoing access to finance as they recover from the economic impact of the Covid-19 pandemic.

Tim Hawkins (pictured below), managing director of Arbuthnot Commercial ABL, said: “Reaching this milestone in just three years and achieving our growth plans during a pandemic is a real testament to our brilliant and highly experienced team.”

“They have an acute understanding of the needs of mid-tier businesses and how to provide the level of funding and speed of delivery that event-driven transactions demand. 

“We would particularly like to thank and recognise the key business introducers with whom we work in partnership to provide the funding certainty that their clients need to achieve strong and sustained growth.”

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