Last checked at 11 Aug 2021 07:00
11 August 2021
Duke Royalty Limited
("Duke Royalty", "Duke" or the "Company")
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
This announcement contains inside information.
***ENDS***
For further information, please visit www.dukeroyalty.com or contact:
Duke Royalty Limited | Neil Johnson / Charlie Cannon Brookes / Hugo Evans
| +44 (0) 1481 730 613 |
Cenkos Securities plc (Nominated Adviser and Joint Broker)
| Stephen Keys / Callum Davidson / Julian Morse / Michael Johnson
| +44 (0) 207 397 8900
|
Canaccord Genuity (Joint Broker)
| Adam James / Georgina McCooke | +44 (0) 207 523 8000 |
SEC Newgate (PR) | Elisabeth Cowell/ Richard Bicknell/ Megan Kovach | + +44 (0) 20 3757 6882 dukeroyalty@secnewgate.co.uk |
About Duke Royalty
Duke Royalty Limited provides alternative capital solutions to a diversified range of profitable and long-established businesses in Europe and abroad. Duke Royalty's experienced team provide financing solutions to private companies that are in need of capital but whose owners wish to maintain equity control of their business. Duke Royalty's royalty investments are intended to provide robust, stable, long term returns to its shareholders. Duke Royalty is listed on the AIM market under the ticker DUKE and is headquartered in Guernsey.