We have a broad outlook, investing to support our partners realise a wide range of transaction outcomes. Situations that we regularly consider:
Buy outs
Hutton Collins invests in new buy outs alongside financial buyers to help these partners achieve a number of objectives, including targeting larger acquisitions or enhancing returns. In some situations traditional debt financing may be either unavailable or an inappropriate way to finance an acquisition.
Follow on funding for portfolio companies
We often invest in existing buy outs, providing capital to support businesses in making major strategic acquisitions or continuing buy and build or roll out strategies. We can invest where financial sponsors have reached their own investment ceiling or where the fund is closed for further investments.
Portfolio liquidity
Hutton Collins invests in existing buy outs ahead of a sponsor's full exit. This allows the sponsor to unlock the equity value that has been created since making the initial investment, whilst continuing to benefit from ongoing growth in the business. The use of our capital allows sponsors to generate greater proceeds for distribution than would otherwise be achieved through raising conventional debt, on terms that provide the business with greater financial and operational freedom.
Refinancing and recapitalisations
We work to help companies address a range of debt financing issues. These often include providing financing to reduce the amount of secured, cash pay debt to improve financial and operational headroom or repay maturing debt facilities.
Shareholder financing
Hutton Collins works with equity investors to address a variety of shareholder related issues. We work with management teams who hold significant stakes in their companies to buy their businesses outright from institutional or founder shareholders. We provide support for management/family succession or to enable continuing shareholders to buy out exiting investors, whether majority or minority in scale. In all cases, our capital enables the continuing shareholders to acquire or maintain substantially greater levels of ownership than traditional equity structures allow, without the restrictions that come with conventional debt financing.
Development capital
Hutton Collins supports businesses owned by many types of shareholder, including financial, family, founder and management owned companies. Our capital is used to finance acquisitions and organic development including capital projects, working capital and other expansion needs.
Shareholder liquidity
Hutton Collins invests alongside outstanding entrepreneurs and family owners who are seeking to create interim liquidity events ahead of exiting their businesses in full. Our capital enables these shareholders to realise part of their investment with less dilution than selling a conventional equity stake, and carries fewer of the restrictions that come with debt finance.