Shard Credit Partners Direct Lending Fund I posts second exit with GadCap Debt Repayment

28 February 2024

(Photo shows key senior management Paul Seccombe (left) and Michael Baker (right))

 

GadCap Technical Solutions Ltd (“GadCap”) has completed its final debt repayment to Shard Credit Partners Direct Lending Fund I, five years after completing its debt-funded primary MBO in February 2019.

GadCap was established through the spin out of the business and assets of the power generation and aerospace solutions division of a multinational engineering conglomerate in the North East of England.

The direct lending investment by Shard Credit Partners was the first of several primary non-sponsored MBOs financed from its inaugural UK lower mid-market direct lending fund.

Despite encountering numerous macroeconomic challenges throughout its first five years as an independent business, GadCap never missed an interest payment and ensured that it repaid the maximum amount of debt possible each year from surplus cash generated from operations.

 

Alastair Brown, CEO of Shard Credit Partners commented:

“The MBO of GadCap is a model for uncomplicated private credit investing in the UK lower mid-market.  The senior management team are now in the enviable position of owning a significant majority of the ordinary shares in a highly cash generative business with zero debt outstanding.  As a minority shareholder alongside Paul and Michael we look forward to the next stage of our exciting journey together”.

Michael Baker said:

“We will be eternally grateful to Shard Credit Partners for providing us initially with the funds to secure the MBO, but also for their continued belief in the team and the support given over these past five years in helping us realise and achieve our goals.”

Paul Seccombe added:

“We are immensely proud, having come through a couple of uncertain economic years to have successfully paid off the facility loan after five years as we set out in our business plan when forming the company.  We are now in position to review our strategy and provide a platform for the future using Shard as our credit partner as we continue our venture.”

 

About Shard Credit Partners:

Shard Credit Partners is an alternative investment fund manager focused on high cash yielding private credit strategies in the UK lower mid-market. Current assets under management stands at circa £200 million. Its funds seek to generate superior risk-adjusted returns from conservatively structured senior secured credit investments with meaningful equity upside. Fund strategies include corporate direct lending, technology venture financing and international trade finance.

Shard Credit Partners has successfully completed eleven primary investments and more than thirty bolt-on acquisitions from its debut direct lending fund ‘Shard Credit Partners Fund I’, which held a first close in October 2017 at £90.2 million.  Shard Credit Partners plans to hold a first close on its second vintage UK lower mid-market direct lending fund with a fundraising target of £250 million in late 2024.

Shard Credit Partners invests in small to medium sized businesses with strong management teams, supporting them by providing transformative growth capital and event driven financing in support of innovation, growth and expansion.  The Fund invests in businesses across all sectors and throughout the UK.  The firm has a strong ESG focus; in particular, it is a strong supporter of female entrepreneurs and firms with meaningful female leadership, ownership and senior management.

Shard Credit Partners Ltd is an Appointed Representative of Shard Capital AIFM LLP, authorised and regulated by the FCA (FRN 615463).

Contact:

Investor relations:   IR@shardcreditpartners.com

Business:    info@shardcreditpartners.com

Website:    www.shardcreditpartners.com