Capital market firm – Mobeus – has sold its stake in Advantedge Commercial Finance (formerly Factor 21) to eCapital Corp.
The transaction, which took place for an undisclosed sum, represents the first exit from Mobeus Equity Partners Fund IV, and comes three years after the final close in August 2017.
A provider of invoice finance facilities to UK SMEs, Advantedge facilitates rapid access to flexible and straightforward funding for growth and working capital.
Advantedge has registered strong growth, with revenues increasing 2.4 times since the management buyout from Mobeus in November 2016. Earnings before interest, tax, depreciation and amortisation also doubled across the last four years.
David Tilling, CEO of Advantedge, described Mobeus as “unique” amongst other private equity firms due to its ability to “immediately grasp the key technical dynamics of our sector, whilst at the same time bringing their significant expertise in supporting and growing SME businesses.”
Mobeus’ supported Advantedge’s growth through: securing an increased £100m wholesale; establishing a syndicated funding line; launching two new offices; acquiring Henry Howard Cashflow Finance; and a complete rebranding. Consequently, Advantage is well placed to continue on its upwards trajectory.
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Tilling continued: “This milestone enables us to continue our rapid growth trajectory and the whole team here is very excited about what it means, not only for the business but also for our clients.”
Guy Blackburn, a portfolio partner at Mobeus, said: “From Mobeus’s first meeting with Advantedge, we saw great potential in the team and their plans. This, combined with our understanding of the complexities of the SME lending industry, meant we saw a clear opportunity at Advantedge. Bringing together our experience with the team’s drive, clear strategy and ambition has led to a great result for everyone involved.”
Advantedge stands as eCapital’s first European acquisition. The alternative finance provider, established in 2006, recently acquired six other North American businesses as part of its buy-and-build strategy.
Marius Silvasan, CEO of eCapital, commented: “Having investigated opportunities in the UK for a number of years, we recognised Advantedge as a great target platform acquisition for eCapital and we are delighted to have completed this transaction.”
Offering services such as factoring and asset-based lending, eCapital is targeting providers of trade finance solutions to SMEs.