Venturi completes MBO following multi-million-pound loan

Employment & Skills | Mergers & Acquisitions | North West | Technology

Alternative SME credit specialist Caple has helped Venturi, an international IT recruitment company, to access a multimillion-pound five-year unsecured loan.  Caple offers access to unsecured lending of up to £5m.

Manchester-based Venturi was founded in 2009 by Brad Lamb and is one of the top-50 tech staffing businesses in the UK, as ranked by industry publication The Recruiter.

Venturi will use the loan to complete a vendor-initiated management buyout of the entire business. Venturi will also use the loan to grow in the UK and internationally, supporting US and German tech clients from its New York and Berlin offices respectively.

Firms such as Venturi can find access to secured lending a challenge because it is a services-based business with few physical assets, and it trades internationally. Banks generally need tangible assets to put up as security for loans, so raising additional finance to complete an MBO and grow was not open to them.

Another challenge for Venturi in raising this finance was that it does a significant part of its business overseas and uses invoice financing on those transactions.

This can make it difficult to raise finance from high street banks. They often make additional debt finance dependent on them also taking over the invoice finance services, even though they don’t fund overseas invoices.  Consequently, in order to raise finance, Venturi would first have had to forgo much of its existing finance, stifling growth.

Caple worked with Sonovate, Venturi’s existing invoice finance provider which supported with additional working capital, to ensure the business has all the funding it needs.

Sean Brophy, UK country manager of Caple, said: “Many successful businesses, such as Venturi, are growing by developing intangible assets such as services and data. However, while banks can lend against the tangible assets in a business, they can only do so up to the value of those physical assets available as collateral. After that, they cannot help.

“This creates a barrier to growth and may force businesses to issue equity instead of raising debt. Venturi is a classic example of an asset-light business with few long-term financing options despite its impressive growth. Our unsecured lending deal demonstrates how we are able to work with other lenders so businesses like Venturi can focus on scaling their business.”

Brad Lamb, founder of Venturi, said: “This is an exciting new chapter for Venturi. We will build on the excellent international reputation we have established in the IT and technology sectors. Working with both Caple and Sonovate, the management team is looking forward to expanding Venturi’s market share and playing a key role in supporting the international technology industry.”

Venturi specialises in placing high-quality people into key technology roles in the IT and tech sectors. These roles include business information, data, analysis and security, and software development.

The business has grown significantly over the last decade. It established a presence in Germany in 2015 and set up in the United States in 2017. It employs 70 people and is forecast to deliver revenues of around £31m at the end of this financial year.

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