Close Brothers Growth Capital, the debt and equity finance unit of Close Brothers set up in 1999, has hired Barrie Moore as a director.
Barrie joins the CBGC team from ABN AMRO where he was managing director and founder of the firm’s mezzanine financing capability. He began his career in 1973 with the Hong Kong and Shanghai Bank and has since held senior position with Hambros Bank and NatWest Markets. During his career he has been involved in raising over £200m of mezzanine capital and invested a further £120m in companies around the UK.
ABN AMRO Capital, the private equity arm of the Dutch bank, announced in February 2002 that it would withdraw from the mezzanine market to focus on its European buyout business, saying that mezzanine was non-core and low margin. As a result, the firm terminated its second mezzanine fund – The Second ABN AMRO Mezzanine Partnership LP – which was launched in March 2000 and closed at $150m in October 2001.
CBGC, which describes itself as a ‘one stop shop’ for debt and equity investments, provides funds for management buyouts, growth capital and secondary buyout transactions. It invests in situations in any sector where the total funding requirement is between £2m and £25m and aims to be the only financial institution involved.
The unit, which closed its first fund in November 2000 on £50m with commitments from Close Brothers, Bank of Scotland, Prudential M&G and The European Investment Bank, has produced returns in excess of 30 per cent per annum on exits so far, according to Bill Crossan, managing director of CBGC. “Our one stop shop funding has proven enormously successful since launch in 2000 and is producing investment returns far above those seen recently in more traditional private equity.”
Last year, CBGC backed several UK buyouts, including an MBO at Delta Fluid Products (DFP), a UK vales and fittings manufacturer and Brayshay Holdings providing £6m and £3m respectively.