Duke Royalty: Successful exit of investment in royalty partner
Successful Exit of Investment in Royalty Partner
Duke Royalty Limited (AIM: DUKE), a provider of alternative capital solutions to a diversified range of profitable and long-established businesses in Europe and abroad, is pleased to announce the successful exit of its investment in royalty partner BHPC Limited (“BHP”), an Irish insurance brokerage specialising in the not-for-profit insurance space.
Highlights:
- At closing, Duke received back net cash of £6.9 million, delivering an IRR of 29.4%, Duke’s highest realised IRR to date
- BHP has been a royalty partner since 2018, following Duke’s initial investment of £4.2 million to facilitate a successful buy-out of the Irish specialised insurance broker
- Funding buy-outs represent one of Duke’s core investment strategies, as its long dated and minimally dilutive capital holds real attraction over other sources of available funding
- Proceeds from this exit will leave Duke in a positive net cash position providing liquidity of more than £35 million to pursue its pipeline of near and mid-term investment opportunities
Neil Johnson, CEO of Duke Royalty, said:
“Duke’s investment in BHP is a perfect example of how Duke’s capital can generate a great outcome for all parties. In the case of BHP, we financed the buy-out of a strong existing business and enabled the buy-out group to acquire the majority of the equity. Not only has Duke made its highest IRR to date, but the buy-out group has also generated significant equity value for themselves, with the anticipated strong growth in their business enabling them to utilise Duke’s early buy-back feature, resulting in a favourable exit for both parties. We wish the BHP board and executive team every success for the future.
“This successful exit further validates Duke’s model and leaves us in a strong position to pursue our pipeline of investment opportunities in the near term.”
Duke Royalty Portfolio
A full list of Duke’s current royalty partners are now included for reference on the Partners page on the Company’s website: www.dukeroyalty.com/partners
