UK-based PHD Equity Partners has backed an MBO for lending company Davenham Group’s residual loan book through a new debt fund.
PHD, which was launched by corporate advisory firm Dow Schofield Watts, bought into the business through its Debt SPV No 1 Fund.
That fund has raised more than £5m from wealthy individuals and DSW directors, the firm said.
Davenham Group collapsed owing banks almost $65m in 2011 according to a report in local newspaper the Manchester Evening News.
It said the firm fell into administration after its banking syndicate refused to renew its facility, despite receiving six expressions of interest.
PHD said Davenham’s bosses were now working with DSW on new fundraising to enable them to lend to SMEs, primarily in the north of England.
DSW said the company had an experienced management team and provides the fund with strong security and cash flow, and expects it to provide a return to investors within 18 months.
Co-founder James Dow said, “The debt fund further demonstrates our abilities to innovate and create value for clients and moves us closer to being recognised as an independent merchant bank.”
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