News Room
June 2008
Aberdeen and Core Capital in strategic partnership
The team at Aberdeen Asset Managers Growth Capital has agreed a new UK-wide business partnership with Core Capital LLP, aimed at leveraging the respective strengths of both businesses to provide the best possible shareholder returns.
Under the terms of this agreement, Aberdeen and Core will work on a formalised basis, sharing transactions and offering an integrated package of finance for fast growing SMEs in a range of investment situations, including MBO/MBIs, Expansion Capital, and Replacement Capital, which require equity and mezzanine funding of up to £10m. The two teams will manage in excess of £200m in funds and will continue to apply a generalist investment approach.
The benefits of our alliance
This alliance will bring significant benefits to investors, providing access to a wider pool of transactions with broader geographical and risk diversification. At the same time advisers will have access to the combined strength and expertise of two highly experienced private equity teams, able to pursue larger transaction sizes and provide complete UK coverage.
Aberdeen will also provide back-office administration, accounting and investor relations services to the Core funds, using the existing support team resource.
Aberdeen Head of Investment Bill Nixon said:
"The partnership with Core should bring mutual benefit to our respective shareholders, given the similarity in investment approach and style. In addition, in this time of reduced availability of bank debt, this enlarged business provides advisers and investees with access to a team providing a wholly integrated debt and equity funding package."
Core partner Walid Fakhry said:
“"By partnering up with Aberdeen, we are able to deploy our funds more effectively and have a larger platform against which to develop new products. We look forward to bringing forward a series of new investment opportunities to the IFA community in the next 12 months."
About Core Capital
Core Capital was founded by Steve Edwards and Walid Fakhry in 2004. Core currently manages five VCTs, and has already established a reputation as an innovative private equity manager.
Core invests both equity and mezzanine finance in profitable and growing companies, typically with an enterprise value between £5 million and £30 million, making an investment of between £3 million and £8 million per transaction.
With a similar investment focus to Aberdeen, Core looks to work with strong management teams rather than to focus on any particular sector or transaction type, and believes their experience is fundamental to realising strong returns from their investments. They are an active and supportive investor of new and existing portfolio companies, offering management teams assistance in specific areas, such as corporate strategy, acquisitions, international expansion and refinancing.
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