Keen on mezzanine
Graphite was a founder investor in the start-up of Intermediate Capital Group (ICG), a provider of mezzanine finance for management buy-outs.
The business was an early and innovative provider of mezzanine finance for management buy-outs. The management team had extensive experience of structuring debt and equity packages at a number of major banks. The business was at the forefront of growth in the provision of mezzanine finance in the UK.
ICG was well placed to take advantage of a rapid increase in demand for its offering from an expanding UK and continental European market. There was a shortage of debt providers and none were independent of large banking groups. Graphite knew and understood the market well.
Under Graphite’s ownership, Intermediate Capital Group:
- established itself as the leading provider of mezzanine finance in the UK and subsequently in continental Europe
- raised a series of third-party funds to increase its revenues and expand its loan portfolio
- grew its loan book to £170 million in six years
- increased operating profit to £18 million
In 1994 Intermediate Capital Group was floated on the London Stock Exchange. Graphite continues to have a shareholding and has generated a multiple of 4.8 times cost and an IRR of 23 per cent to date.
