Duke Capital15 Feb 2024 10:09
I have voted for this rebranding and very happy to hold and add at these levels.
Proposed Change of Name, New Website, Renewed Messaging and Investor Presentations
Duke is pleased to announce the outcome of its previously reported review of the SME Financing sector and to update the market on its proposed change of name to Duke Capital, new corporate website and renewed messaging.
Conclusions from our review
Duke's review has focused on ensuring that its unique offering is communicated to business owners and stakeholders in a way which provides greater clarity and improves comparison when evaluating a broad array of financing options. We believe this is in the best interest of the Company and its shareholders for the following reasons:
· The global private credit market is a large, rapidly growing and evolving segment of the financial sector, which includes direct lending, mezzanine, high-yield debt and other alternative products such as royalties
· Private credit, and especially direct lending (ie non-bank lending) has become more widely accepted in the SME sector in the last decade, and we believe Duke's solution is best classified as direct lending
· Duke has a seven-year track record in providing long-term, unique financing solutions to the lower mid-market in the UK, Europe and North America with current invested capital of over £200 million
· During that time, traditional royalty companies in the mining, music and pharmaceutical sectors have proliferated, especially in the public markets, which has resulted in confusion about Duke's solution for lower mid-market businesses which has, to date, been known as 'corporate royalties'
· By reframing our product as 'hybrid capital', we can more easily convey the attributes of our financing solution to business owners and investors and build on our momentum
· We define hybrid capital as a financing solution that blends features of private equity and private credit products and is more flexible than traditional debt or equity alone
· Despite the name change, our core product, investing policy and investment criteria are not changing, and we will continue to provide business owners with our unique 'corporate mortgage' debt product with equity-like attributes which align our success with the success of the business
Additional flexibility for investing
· Going forward, Duke will have additional flexibility to take equity ownership over 30% if and when situations necessitate or there is clear rationale to do so for our shareholders. The Company will maintain the same investment approach which, unlike private equity, is not looking to take control of the business or force an exit
· This additional flexibility is intended to benefit investors by enabling Duke in certain circumstances to continue longer with our best performing partners and ensure our capital growth is maximised, while not affecting our recurring cash revenue during the investment