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Palamon’s Towry nets £47.3m debt package from Macquarie, RBS

20 Sep 2012

Towry, the UK wealth manager with £4.6bn of assets under management backed by mid-market private equity firm Palamon Capital Partners, has secured a £47.3m financing package from Macquarie and Royal Bank of Scotland (RBS).

The proceeds of the debt issuance, which comprised £42.5m of senior and junior loans provided by Macquarie and £4.8m of additional senior debt provided by existing lender RBS, were used to replace a mezzanine debt facility.

Towry provides fee-based financial advice and discretionary asset fund management services to more than 25,000 clients.

Revenues have grown more than 35 per cent annually since Palamon’s initial investment in the business in 2003, while assets under management have increased by almost 40 per cent through organic growth and strategic acquisitions.

The firm said the new financing structure provides a sound basis from which further expansion can take place, while also reducing the financing costs to the business.

Towry is understood to be looking at an initial public offering by the end of 2013 after shelving plans to list last year due to market volatility.

The company expects to benefit from new regulation coming into force in January next year that will ban rebates from fund managers to wealth managers and financial advisors whose clients invest in their products.

Towry does not charge commission from funds to which it invests clients’ money, and expects to pick up business from advisors that shut up shop in the wake of the new rules.

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