WestBridge supports DB systems with growth plans

WESTBRIDGE Capital has led a £4m financing to assist DB Systems Limited with its future growth plans. 

Established in 1994, Tewkesbury-based DB Systems supplies state-of-the-art audio visual and IT equipment, interactive software and temporary network infrastructure to trade shows, large exhibitions and live events in the global events market.

The business was founded by David Bulley who continues as CEO, leading a strong operations team with many years’ experience in the events industry.

Sales and employee numbers have grown rapidly in recent years. The business now has annual revenues of £8m and 63 employees. It supplies equipment to some of Europe’s best known events and venues, including Farnborough International Air Show, Mobile World Congress Barcelona and Aberdeen Exhibition & Conference Centre, as well as technical support to trade show organisers across Europe, the Middle East and Asia.

WestBridge Capital partner James Wakefield, who worked on the transaction with colleague Sandy Smart, said:

“This is exactly the type of well managed business we like to invest in. It has a large number of long established customers who value its consistent provision of quality service. 

“We believe its market leading position provides a springboard for significant future growth. The additional capital will boost business development and allow investment in the latest audio visual equipment which will enable the business to accelerate its expansion plans.

“DB Systems is a robust and profitable business with a strong order book, enviable portfolio of customers and high level of repeat and recurring revenue.

“Despite a global market value of US$27bn, the sector is very fragmented so we will also be considering value-enhancing acquisition opportunities. Working closely with David and the management team, we’ve already identified a number of key strategic opportunities for the business over the next few years. 

“The structure of the transaction should prove mutually rewarding. It means David will remain very much hands-on in the business, while the management team he has built around him will also have an ownership interest.

David Bulley said:

“This is a very exciting time. I remain passionate about what we do and after years of carefully nurturing this business into a respected and trusted supplier, we now have a significant capital injection to help us realise our future growth potential.  

“We are particularly pleased to have backing from WestBridge Capital. I welcome their partnership approach to investment which means they deliver hands-on advice, guidance and support in a number of different areas.

Term debt of £1.25m has been provided by NatWest. Transcend Corporate acted as corporate finance advisers. Grant Thornton undertook financial due diligence. Lawyers for the transaction included Capital Law, who advised WestBridge Capital while Squire Patton Boggs advised David Bulley. CIL undertook the market due diligence review.

Hogan Lovells and Innovate Finance Partner to Promote UK as FinTech Hub 

November 16th, 2015, London UK: Hogan Lovells and Innovate Finance are pleased to announce they have entered into a Strategic Partnership. 

Hogan Lovells and Innovate Finance are aligned in their aim to support and develop the FinTech community in the UK and globally, a growing industry for which Chancellor George Osborne showed his support last week. Speaking at the Bank of England’s Open Forum event on Wednesday he said: ‘I want the UK to be the global centre of FinTech. We will go out of our way to do that. The race is on but we are determined to win it.’

As the first law firm Strategic Partner of Innovate Finance, Hogan Lovells will play a pivotal role in this, working with the full range of players, from start-ups to established financial services institutions and FinTech companies. Hogan Lovells has been at the heart of innovation within the financial services sector for many years, working on a range of developments from the UK's first ever debit card to advising Zopa on the UK's first peer to peer lending platform and Barclays on the launch of Pingit.

An independent not for profit membership organisation, UK based Innovate Finance has over 150 members and acts as a bridge between industry and policy makers, connecting incumbents and investors with emerging companies to facilitate the exchange of ideas and access to capital.

At the intersection of government and business, with approximately 800 lawyers and a presence in all the world’s financial hubs, Hogan Lovells Financial Institutions Sector has an outstanding reputation for combining industry experience with an in-depth knowledge of the regulatory background and TMT sector to provide a unique legal perspective on financial services and advice to clients collaborating with and investing in FinTech.

Announcing the Strategic Partnership at Hogan Lovells Global Payments Conference in London today Alastair Lukies CBE, Chairman Innovate Finance said:
 
"In the wake of Worldpay's recent landmark ‎FinTech IPO in the UK, the Strategic Partnership with Hogan Lovells will help Innovate Finance on its mission to champion the UK as a global FinTech hub, supporting the growth of innovative FinTech businesses. 
 
FinTech businesses need to contemplate regulation and commercial frameworks to support strategies for today and the next generation. Hogan Lovells are exceptionally well placed to ‎help Innovate Finance support their members’ growth through this fast changing landscape."

Rachel Kent, Co-Head of Hogan Lovells' Financial Institutions Sector, added:

"Hogan Lovells is committed to innovation and the UK is the fastest growing region for FinTech investment, so a Strategic Partnership with Innovate Finance is the perfect fit and an exciting collaboration of shared cultures.  At Hogan Lovells we pride ourselves on being at the forefront of market developments and the heart of industry. We relish the prospect of using our legal and regulatory knowledge across the Financial Institutions and TMT sectors to help influence and shape the future of the FinTech industry. Together with Innovate Finance we have a unique opportunity to collaborate with the innovators, disruptors and forward thinkers as well as the established players in this rapidly expanding community which will revolutionise the financial services sector as we know it."

Kuber Ventures introduces new Business Property Relief (BPR) investment portfolio

Kuber Ventures (or ‘Kuber’), the alternative fund investment platform provider currently specialising in EIS/SEIS, has today launched a new portfolio offering to support Business Property Relief (BPR) investment for investors and advisers.

BPR has been a key consideration in Inheritance Tax (IHT) planning for some time. And with George Osborne’s indication in the Summer Budget that IHT will continue to be a prominent theme for the foreseeable future, alternative investment opportunities, such as BPR, are becoming increasingly popular. According to Intelligent Partnership, 95% of advisers are expected to do more BPR business over the next five years. This new product is therefore a well-timed addition to Kuber’s platform.

This new BPR investment portfolio consists of the following IHT offerings:

-Guinness Sustainable Inheritance Planning, which invests in unquoted sustainable energy businesses that qualify for BPR and aims to deliver returns to investors of in excess of five per cent

- Deepbridge IHT Service is a discretionary investment management service that invests in asset-backed renewable energy opportunities that benefit from contractual revenues available under the Renewables Obligation Certificates

- Blackfinch IHT Portfolios has two model portfolios: Blackfinch Capital Preservation Portfolios and Blackfinch Growth Portfolios - both focus on capital protection, with the latter’s objective being enhanced potential upside

- Seneca Inheritance Tax Service is a fund that pools investors’ capital in an unquoted investment company, Seneca Secured Lending, which then offers short and medium-term loans to small and medium-sized businesses (SMEs)

The BPR portfolio of four funds is accessed through Kuber’s platform. There are a number of benefits which come as part of this full service offering. Currently, the platform allows investors to easily diversify their portfolios over a number of EIS managers and portfolios, which helps mitigate and control business risk. This new BPR addition provides a single place for investors to monitor all of their investments across BPR, EIS and SEIS. Simplifying the whole process by offering a one-application, one-payment format is also a key advantage which helps to streamline administration and improves efficiency.

Dermot Campbell, CEO of Kuber Ventures, commented: “This is a prominent time for IHT planning with a number of reforms affecting not only UHNWs, but increasingly the wider population. It is therefore important that the industry takes the necessary steps to assist with mitigating the impact of IHT through investments such as BPR. This relief comes with a number of benefits including investors retaining control of assets and flexibility when it comes to accessing it, as well as it only taking two years to gain exemption from IHT.

We remain committed to providing investors and advisers with the tools they require to build portfolios and control risk exposure by providing a single platform which allows advisers to effectively manage their clients’ affairs efficiently and transparently. This simplification of processes, in turn, means advisers can focus on their core business of providing advice. As we continue to expand Kuber’s offering, our experienced team is constantly growing to support the increasing demand from the industry capitalising on this opportunity. Going forward, we can expect more mangers to join the platform to widen the BPR portfolio proposition, once again innovating in the style of Webb Ellis in making BPR available via a platform with all the associated benefits of control, diversification and transparency.”