Business Case:
Tailoring the Solution:
Accelerating Results:
CapQuest – Acquisition
http://www.capquestco.com
Business Case:
In May 2004, CapQuest was acquired by two financial services entrepreneurs together with the founder of the business, who were seeking to transform one of the UK's leading credit card collection agencies into a purchaser of non-performing consumer debt portfolios. The new owners had prior experience as mezzanine lenders themselves and initiated a highly competitive search for a specialty finance company to help fund the acquisition of non-performing consumer debt portfolios. At the time, CapQuest did not have the financial strength to raise all of the required debt from traditional bank sources and was proposing to execute a complex growth strategy in a highly regulated and challenging sector. CapQuest's situation required a uniquely sophisticated and flexible debt provider that could understand the long-term growth opportunity.
Tailoring the Solution:
The DAM Capital group quickly realized the business potential and funded £8 million (of the £16 million debt raised by CapQuest). After successfully acquiring and operating their first few portfolios, the Company approached the DAM Capital group again in 2006 for further financing in order to acquire additional non-performing consumer debt portfolios. In November 2006, the DAM Capital group provided a further £9.5 million of second lien debt (of the total £19 million second lien raised).
Accelerating Results:
The DAM Capital group continues to support CapQuest as the owners execute their portfolio acquisition strategies. In 2007, the DAM Capital group increased its total investment in CapQuest to more than £28 million.