National IFA Towry has agreed a £47.3 million financing package with the Royal Bank of Scotland (RBS) and Macquarie Bank.
The debt issuance was arranged by Towry's parent company Palamon Capital Partners and is composed of £42.5 million of senior and junior loans from Macquarie and £4.8 million of senior debt from RBS who was already a lender for Towry. It has been used to replace a mezzanine debt facility.
Towry chief executive Andrew Fisher (pictured) said the debt agreement would help power further expansion of the group. 'The new lending facilities that we announce today significantly reduce our financing costs and provide a sound capital structure for further expansion of the company,' he said. 'Our finance team has put in an exceptional amount of work in order to secure these loans, which we believe will help us to achieve our ambition of becoming the leading firm of wealth advisers in the UK.'
Daan Knottenbelt, partner at Palamon Capital Partners, said: 'The improved efficiency of the capital structure of Towry is a testament to the strength of its business, which since our initial investment has grown assets under management by almost 40% per year to £4.6 billion through a combination of organic growth and strategic acquisitions.
'The financing structure provides a sound basis from which further expansion can take place to continue the company’s high rate of profit growth and solidify its position as a national leader in the IFA sector.'
Florian Herold, co-head of Macquarie European Lending said: 'We believe Towry is a well-regarded, high-growth company with strong recurring revenue streams. Working closely with the management team at Towry and Palamon, we are delighted to have been able to develop and put in place a financing structure that meets their specific needs.'
Towry advises on around £4.6 billion of assets for 25,000 clients.