A new debt fund established by Dow Schofield Watts has supported the management buyout of Manchester lending company Davenham Group’s residual loan book.
The PHD Equity Partners Debt SPV No 1 fund has raised more than £5m from wealthy individuals and directors of Dow Schofield Watts, a business advisory firm based at Daresbury, near Warrington.
The proceeds have been used to back a buyout via a new company called Davenham Portfolio Management, whose bosses are now working with Dow Schofield Watts on a new fund-raising so they can lend again to small and medium-sized firms, focusing on the north.
Dow Schofield Watts said DPM has an experienced management team and provides the fund with strong security and cash flow, and is expected to provide a return to investors within 18 months.
Dow Schofield Watts, which offers corporate finance, management and financial due diligence, business broking and forensic services, already has its own private equity arm, PHD Equity Partners, and the debt fund is the latest addition to its offer.
Co-founder James Dow said: “The debt fund further demonstrates our abilities to innovate and create value for clients and moves us closer to being recognised as an independent merchant bank.