Downing Investment Update

Transcription

1 Downing Investment Update 2015

2 Covering every angle

3 Welcome 2014 was a record year for us - we invested over 130 million across a variety of sectors, including leisure, education, healthcare and renewables. It saw the launch of our ventures fund, leading to some exciting investments, primarily in early-stage UK technology companies - if you re a social media enthusiast, look into Miappi and Duel. We also continued to invest into asset-backed businesses, growing our estate of pubs, making several investments into care homes in Scotland and even funding a satellite earth station! We re now looking forward to a further increase in investment activity in 2015, and have already lined up a series of investments in the renewables space, notably anaerobic digestion plants and hydro projects. Our strategy is to invest across the capital structure, providing a mix of both debt and equity. We re always keen to discuss new projects - so get in touch, we promise a speedy response! Chris Allner, Head of Investment

4 Sectors We are actively seeking new opportunities to back teams in the following sectors At Downing, we are proud to support the development of hundreds of UK companies. Our investment strategy focuses on deal sizes of 2m - 15m, supporting high quality management teams to deliver their growth strategy, often through a site-by-site roll-out. Asset-Backed We focus on businesses that operate through freehold and long-leasehold properties, including: ffchildren s nurseries ffpubs ffwedding venues ffvisitor attractions ffgyms & spas ffcare homes Property Finance We are experienced in providing funding solutions for construction projects and are seeking to finance similar opportunities in: ffstudent accommodation ffhotels ffdata centres Page 4 Downing Annual Investment Update 2015

5 Renewables We also have a depth of experience investing in the renewables sector and are looking for investment opportunities in: ffanaerobic digestion ffwind ffsolar ffhydro ffenergy storage Ventures In 2014, we launched a venture fund focused on early stage technologies, including: ffconsumer internet & mobile ffenterprise software ffdefence technology fffinancial technology ffhealth technology Get in touch with us If you d like to speak to a member of our investment team about an investment opportunity, you can get in touch with us by at investment@downing.co.uk, or alternatively call us on You can also visit our website to find out more about what we do. Downing Annual Investment Update 2015 Page 5

6 New Investments There has been an open and collaborative approach to deal making Peter Borg-Neal, Oakman Inns Downoak Limited an exciting new partnership ffdownoak Limited is a pub EIS company managed by the award-winning operator Oakman Inns. Downoak recently acquired, refurbished and relaunched its first site, The Akeman Inn. ffwe were impressed with the Oakman team s passion, sector knowledge and market experience, which has earned them recognition in the Sunday Times Best 100 Companies to Work For ffour speed of response and ability to provide a greater level of capital than traditional funding alternatives presented an attractive opportunity for the Oakman team to grow their business. Page 6 Downing Annual Investment Update 2015

7 Curlew Power Limited powering 5,500 homes ffwe supported Curlew Power Limited in acquiring 16 wind turbines in Cumbria, currently generating enough clean electricity to power 5,500 homes annually. ffwe secured this deal through a long-term investment partner, based on our extensive knowledge of the renewables sector. ffthe turbines will benefit from support under the Renewables Obligation Certificate (ROC) scheme for a further 7 years. Miappi a dynamic social aggregation tool ffmiappi s software allows businesses to showcase multiple social feeds on their website, and currently counts Sony Music, Bauer Media and Unilever among its clients. ffwe were impressed with the founders track record in creating value, and their commitment to making the company a success. Page 7 ffwe understood the company s need for both strategic and financial support, and were able to provide them with this from the start. Downing Annual Investment Update 2015 Page 7

8 Updates on Investments We were pleased with Downing s approach and look forward to working with them again Winston Reed, Greener for Life Energy Willowglen Renewables Limited waste solutions for local farms ffworking with marketleading consultants Greener for Life and experienced technology providers Biogest Energie, we backed Willowglen Renewables Limited to construct an AD plant at Hogsbrook Farm, Exeter. ffusing our industry expertise and AD sector knowledge, we were able to transact quickly and add commercial value to the project, which was completed both on time and on budget and is now operational. f f The plant will help local farms to dispose of their waste, and provide a steady income for land used in their crop rotation. The digested wastes can also be used as a nutrient rich biofertiliser. Page 8 Downing Annual Investment Update 2015

9 Care Concern backing buy-and-build growth ffwe continue to support Care Concern in their growth strategy, and have provided them with financing for turnkey, turnaround, new-build and extension projects. ffour third investment with the group - acquiring land at Pinkhill, Edinburgh - will see the construction of a 70-bed elderly care home. ffwe have also provided funds for the extension and refurbishment of Rowan Court, a 68-bed care home in Aberdeen. Pabulum Pubs Limited our sixth investment together ffpabulum Pubs Limited was set up in 2012 to acquire, refurbish and operate freehold pubs and bars under the successful Antic London banner. ffour flexible funding enabled the company to acquire its fifth and sixth sites with us in f f Benefiting from prominent positions on busy high streets in South London, these two new pubs are undergoing refurbishment and are expected to open for trade this year. Downing Annual Investment Update 2015 Page 9

10 Exits Our Funds made a series of successful exits in 2014 that provided positive tax-free returns for investors London Road Student Property ffwe backed Urban Creation, who specialise in high-quality student property in the UK s top Russell Group university cities, to develop the London Road project in Southampton. ffin 2014, Urban Creation sold the London Road development to Empiric Student Property PLC for 3.55 million, which allowed our funds to successfully exit the investment. f f We have funded a number of student property developments with Urban Creation, and are currently financing two projects in Bristol which are set to open in September Page 10 Downing Annual Investment Update 2015

11 Oyster Pier ffoyster Pier LLP develops bespoke residential Dutch barges for sale alongside rare long-term moorings in Battersea, London. ffin 2011 we provided funding to allow for the purchase of the scheme and development of the first barge. f f Following some successful sales and a refinance we secured a full exit from the business in early Aegis Data Centre ffour Funds backed Aegis to develop a new state-of-the-art data centre in Surrey, taking advantage of the growing demand for offsite data and cloud storage. ffaegis One provides highspeed connectivity for corporate clients seeking secure data storage. ffwith access to over 9MW of power and development potential, Aegis attracted further funding from third party sources. Our investment was repaid, creating a successful exit. Downing Annual Investment Update 2015 Page 11

12 Important notice This document is for information only and does not constitute an offer or invitation to apply for shares in any Downing fund. This document has been prepared by Downing LLP ( Downing ), which is authorised and regulated by the Financial Conduct Authority. Downing does not provide advice and investors should seek independent financial advice before making any investment decision. In particular, any decision to invest in any Downing product should only be made based on consideration of the relevant prospectus or information memorandum and investors should note that these products may be illiquid, high risk and long term in nature. Ergon House Horseferry Road London SW1P 2AL contact@downing.co.uk This document has been printed on 100% recycled paper Downing LLP is authorised and regulated by the Financial Conduct Authority