A cross-discipline and cross-office team from Gateley Plc has advised Beechbrook Capital, the specialist direct lender, on its investment in regulatory and credit risks analytics consultancy, 4Most.
The deal sees Beechbrook complete the third investment in its UK SME Credit Fund, providing a combination of debt and equity to 4Most Group Holdings Ltd (‘4Most’), a company providing regulatory and credit risk analytics consultancy to banks, credit card providers and other businesses with consumer credit exposure.
The regulatory environment for the financial services and banking sector demands ever more analysis around the potential for losses in changing economic conditions.
In particular, IFSR9, which explicitly requires banks to analyse future loss expectations, Basel II and III, and the stress testing process conducted by the central banks have combined to massively increase the demand for the high-quality credit risk modelling and consultancy services that 4Most provides.
Beechbrook has invested in both debt and equity to enable a shareholder realignment and help support the organic growth of the business. Beechbrook has become a minority shareholder in the company and will appoint a director to the board.
Jon Herbert, managing director of the UK SME Credit Fund, commented: ‘We have been very impressed with how the two co-founders have developed the business over the last few years and are excited about supporting the business as it broadens its customer base and service offering both in the UK and overseas.
The Gateley Plc team was led by Manchester-based Richard Cowan, Banking senior associate, assisted by Banking solicitor Abigail Sowden, and Birmingham-based Andrew Cowan, Corporate senior associate, assisted by Corporate solicitors Hannah Fletcher and Matthew Lappin.
Commenting on the deal, Richard Cowan said: “We were delighted to be able to support Beechbrook in bringing this investment into a high-growth and exciting business. The combination of debt and equity provided by Beechbrook was tailored to the needs and strategy of the 4Most business and our Banking and Corporate teams worked together coherently and effectively to deliver the legal framework to support 4Most’s future plans.”
Gateley Plc, which last year became the first law firm in the UK to go public, recently revealed that it expected revenues to hit at least £66m for its 2015/16 financial year in a trading update for the 12 months to 30 April 2016.