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(Sharecast News) - Duke Capital announced the successful exit of its investment in Meteor HoldCo on Thursday, which is the parent company of street lighting and guardrail manufacturer Fabrikat Nottingham.
The AIM-traded firm said the exit delivered an internal rate of return (IRR) of 36%, with potential further gains available from future performance-related deferred consideration.
Duke said its financing solution facilitated Fabrikat's established management team to become majority equity owners three years ago.
Since then, the business had a solid operating performance, leading to a significant equity gain for Duke, in addition to the return on its core private credit investment.
Fabrikat was being acquired by Metalogalva Irmãos Silvas, a Portuguese company specialising in engineering and steel protection with more than 50 years of experience and operations across 14 countries and four continents.
Duke initially invested £6.2m in Fabrikat, with the exit marking the eighth successful exit for Duke since its inception.
The proceeds from the exit would provide the firm with additional liquidity for pursuing new and follow-on investment opportunities.
"Fabrikat is a real success story for Duke and a great case study for why Duke's capital is a perfect fit for individuals seeking to execute an MBO," said chief executive officer Neil Johnson.
"Our capital allowed long-standing employees of a strong business to step up into large equity ownership positions and in that role, they continued to prove themselves as great stewards of the business, creating value for all stakeholders.
"In turn, we are pleased to build on our already robust track record of achieving above-average returns on exits."
At 1258 GMT, shares in Duke Capital were up 0.59% at 30.18p.
Reporting by Josh White for Sharecast.com.
