IGF secures £20m in buy-in management buyout
Kent-based invoice financing provider will use investment to support UK firms with up to £100m in revenue meet their growth aspirations
IGF Invoice Finance, an invoice financing provider, has announced a £20m buy-in management buy-out (BIMBO) from private equity investor Spring Ventures.
Established in 1997, the Kent-based IGF provides tailored finance solutions to help businesses manage cash-flow problems and fuel growth.
The company currently has a portfolio of around 200 clients, claiming to have supported small businesses with more than £300m in sales in the year to March 2015.
Spring Ventures will initially inject £9m into IGF to fund the acquisition, with a further £11m of follow on funding made available over the next three years.
IGF intends to lend up to £5m to help UK small businesses with revenues of up to £100m fulfill their growth ambitions, as well as to support re-financings, mergers and acquisitions BIMBOs and restructuring.
As part of the deal, John Onslow, who’s previously grown and sold two asset-based lending businesses businesses, has joined as the new CEO of IGF, with Matthew Cooper, co-founder of Capital One Bank, taking on the role of chairman.
Onslow commented: “In Spring Ventures, we have found an investor that will give us the financial firepower to take IGF into exciting new areas as well as increase our national presence.”
John Hudson, managing partner at Spring Ventures, who joins the IGF board commented:
“This deal gives us an attractive opportunity to back what we believe is the strongest team in the asset based lending sector. Due to the complexity of the business, few operators have the credibility to provide a full range of asset based loans at this end of the market.”