Exit announcement – Baxter
10 March 2014
Connection Capital is pleased to announce that in early March 2014 the secured, high yield, four year term loan made by our clients in June 2010 was repaid in full, including all accrued interest. This represents a net return of 1.5x investment at an average interest of 12.5%, which equates to £4m.
- Total funding: £2.725m
- Investment date: June 2010
- Exit date: March 2014
- Net return of 1.5x at average interest of 12.5%: £4m
- Interest rate: 11% rising to 14% in year 4
- Number of Connection Capital clients: 26
- Legal advisers to Connection Capital: Gateley
The £2.725m advance, made on the basis of first charge against a prime Edinburgh city centre freehold property which had planning permission for re-development as a hotel, yielded interest rising from 11% to 14% per annum.
The transaction is a good example of some of the unusual opportunities that are available to clients of Connection Capital, at a time when there remains some reluctance among banks to provide bridging finance and development loans, even where there is very strong security cover - as was the case in this instance.
As Connection Capital does not operate within the confines of a traditional fund structure, we’re able to secure opportunistic investments such as this one, which we know will appeal to clients.
If you are interested in receiving more information about future investment opportunities and are not yet a client of Connection Capital, please contact Steve Wilson.