Rockpool Investments, a London-based investment manager, has provided a venture loan to human resources management agency Silent Edge as part of a £2.2 million (€3.7 million; $2.8 million) debt plus equity growth package.
Rockpool provided a £400,000 venture loan and £1.8 million in equity in the form of Enterprise Investment Scheme (EIS)-qualifying shares, a programme which aims to reduce the risk of investing in private equity and free investors from tax on gains. Rockpool has taken a significant minority ownership position in Silent Edge.
The transaction marks Rockpool’s sixth loan deal, a spokesperson for the firm told Private Debt Investor. Founded in 2013, Rockpool has provided loans to UK technology and property companies including Aegis, Airedale, Ashley House, Growth Power, Rivington and Sorogold.
Rockpool’s investors can choose to invest in the loan notes or in shares or both. A spokesperson for Rockpool said: “The loans are made through a nominee account. This gives the borrowing company the simplicity of having just one party to deal with, but allows each of our investors to participate directly as beneficial owners of part of the loan. Investors like this route because they have more control and flexibility than with a fund.”
The latest transaction will be used to develop Silent Edge’s skills assessment software (SaaS) offering to clients including British Telecom, Lafarge Tarmac, Archant and Barclays. Silent Edge develops technology which organisations use to evaluate their employees in order to provide skills development.
Silent Edge is Rockpool’s seventh transaction of 2014 and amounts to a total of £24.2 million invested this year. The firm has provided loans to power generation firm Growth Power and healthcare property developer Ashley house this year.
Matt Taylor (pictured), founder and managing partner at Rockpool said in a statement: “Silent Edge is the sort of profitable growth company that exactly fits with Rockpool's model.”
Russell Ward, founder and chief executive of Silent Edge, said that his firm intended to make the firm’s technology accessible worldwide, in a market estimated to be worth over £1 billion.