introduction to bgf smmt meet the funder event · unsecured loans mezzanine debt junior debt...
TRANSCRIPT
Introduction to BGF
SMMT Meet the
Funder event
Solihull, 24th October 2013
Mark Bryant – Head of
Manufacturing
James Syrotiuk – Investment
Manager
Growth Capital for
UK private
companies • An ambitious provider of equity capital for private
companies, with a focus on growth
• Well funded – £2.5bn of capital committed
• £183m invested in 35 companies (so far)
• Strong appetite to support manufacturing sector
• Supported by leading UK banks
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Government
Banks and traditional
debt providers
Alternative debt
providers
Equity funding from
BGF
The funding
landscape
Ordinary shares
Unsecured loans
Mezzanine debt
Junior debt
Overdraft
Senior term debt
Asset-backed debt
Ris
k Se
curi
ty
Grants and ‘low-cost’ loans
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Uses of BGF
funding Companies use BGF investment for:
• Investing in operational capacity – people, buildings, plant and machinery
• Supporting development of new products, processes and markets
• Funding acquisitions
• Strengthening balance sheet
• Addressing shareholder needs
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£2m to £10m investments (with appetite and firepower for further funding)
To support future, long term growth
10% - 40% of equity Always a minority partner – you retain control
Up to 50% cash out For shareholder realignment / de-risking
Flexible structures – equity / loan notes
To meet the need / align with shareholders and management
Long term money – no closed fund pressures
Typically 5 – 10 years. No drag rights. No forced exit.
Fairer legal approach Less onerous investor legal protections
A fast and focused investment process
Minimal disruption and distraction to the business, and a focus on minimising fees
Access to a huge network and support
To provide on-going support to the business…a junior partner
Industry / entrepreneurial experience
And “membership” of one of the most exclusive clubs of successful entrepreneurs
What we can offer
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Observations on the
automotive sector • Generally vey positive news for UK plants: growth in
models and production volumes
• UK supply chain well positioned, struggling to keep pace with demand
• 20-30 years of hollowing out - investment required in capacity and capability
• Not well capitalised
• BGF not seeing expected scale of funding requests:
• Appetite for risk taking amongst owners?
• Long memories – is growth sustainable?
• Desire for free/low cost money?
• Appetite for dilution?
• Now is a good time to invest
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Our Portfolio today
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VTL GROUP
2 4 O C T O B E R 2 0 1 3
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Key reasons for looking into growth capital
Provide MT/LT funding for expanding our customer/product portfolio
through organic growth opportunities alongside bank facilities
Support our acquisition strategy (funding, experience and expertise)
Make further investment in our Indian subsidiary and expand our
Technical Solutions Centre
• Buy-out a retiring shareholder
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Minority investor
Long term view
Resources available (financial, human, network)
Relationship with banks
New in the market and more flexible
Dynamic organisation and willing to do business
Business ethos/philosophy (fair, entrepreneurial, can do attitude,
look at the development potential)
Why BGF?
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Experience so far …
Fair and flexible
In difficult circumstances remained committed to the deal and find ways to
make it work
All BGF people passionate about their mission to invest in SMEs
Keen to support in any way
Absolutely convinced it is the right partner for us even after a difficult and
lengthy process (due to internal reasons)
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Potential for VTL with BGF on board
Raise VTL’s profile
Access to resources and experience/knowledge
More confident to do acquisitions
Provide further assurances to all stakeholders (customers,
employees, banks, suppliers)
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• A new source of growth capital, equity investment without loss of control
• Ambitious investment partner that can support medium to long term plans
• Providing more than just money … guidance, networks, practical support
• Local presence with National reach
Mark Bryant James Syrotiuk
Head of Manufacturing Investment Manager
Email: [email protected] Email: [email protected]
Tel: 07557 232 046 Tel: 07841 494 229
Thank You
In Summary
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