Praesidian backs £15m UK tech financing

The European arm of US asset manager Praesidian Capital will make an initial £7 million debt investment.

Mid-market specialist Praesidian Capital Europe and private client business Connection Capital have together provided £15 million (€18.9 million; $24.4 million) in a debt and equity investment to Redeem Holdings, a UK-based mobile and electronics recycling specialist.

London-based Praesidian, which provides senior and subordinated debt and growth capital, has invested £7 million in debt capital and £1 million in equity. An additional £2 million has been made available as an acquisition line of financing. Connection Capital has provided a £5 million equity investment.

The funds will be used to support Redeems’ international organic growth and potential acquisitions, the firms said in a joint statement.

Redeem is a leader in recommerce, which is the recycling and take-back management of mobile and electronic devices. It is the UK’s largest mobile recycling company.  Revenues are at nearly 50 percent per annum compound over the last four years and are expected to reach £90 million (€113.2 million; $146.6 million) in the current financial year.

Its founder and chairman, Trevor Bayley, who was also a founding partner of private equity firm HgCapital, said: “We selected Praesidian Capital and Connection Capital for their commerciality and have been delighted with the rapid delivery of a competitive funding package. We will continue to review our corporate funding options, including flotation, as we plan to treble in size over the next three years.”

The majority of the traded-in devices that Redeem handles are data wiped, refurbished and resold into a growing number of end markets, which include European phone retailers, mobile phone retail shops and insurance companies. The launch of the iPhone 6 is expected to lead to a surge in a number of used handsets being recycled, the firms said.