Infinity sells remaining 20% in Positive Cashflow Finance
Private equity firm Infinity has sold its remaining 20 per cent stake in business lender Positive Cashflow Finance to the company’s directors. The deal gives complete ownership of Positive to managing director David Smith and fellow directors Peter Davis, Simon Cook and Phil Chesham.
Manchester-based Infinity took a 55 per cent stake when it backed Positive as a start-up with an investment of £2m in December 2007.
Infinity reduced its holding to 20 per cent in 2013 as Positive’s directors raised their combined stake to 80 per cent.
Positive, which has 30 staff across its offices in Manchester and Birmingham, provides factoring and invoice discounting facilities of between £10,000 and Elm to help businesses fund acquisitions, accelerate growth and improve their working capital position. Its loan book currently stands at £22m.
Daniel Finestein, managing partner of Infinity, said: “Our investment in Positive Cashflow Finance was our very first deal and, even though it was a start-up, we knew we were backing a very experienced team.
“We have enjoyed an excellent relationship with David and his fellow directors and we wish them well for the future. Our investment in Positive has yielded a strong return for Infinity and we are looking to replicate this success by supporting other companies which fit our criteria. We take a long-term view when it comes to backing good, well-run businesses and managing those investments through to a successful conclusion.”
David Smith said: “It was always our ambition to own the company outright and this transaction marks the final stage of that journey.
“Infinity has been an outstanding investor. Daniel and his team have been extremely easy to work with, thoroughly professional and hugely supportive. We are now looking to continue our growth with bigger transactions and the addition of asset-based lending deals.”
Royal Bank of Scotland Invoice Finance funded the 2013 partial buyout and has provided backing for the latest transaction.
John Gribbon, northern regional managing director of RBS Invoice Finance, said: "We are delighted and proud of our association with the team at Positive Cashflow Finance and we are excited about extending our support as they continue to build on their success as a leading independent in the factoring and discounting market.”
Paul Jefferson, a corporate partner at law firm Gateley, advised Infinity on the deal. Paul Lockett at Lockett Loveday McMahon and David Gledhill at Bermans advised Positive’s management team while Suzanne Love and Rebecca Mauleverer at Shoosmiths acted for RBS Invoice Finance.