The UK bank for entrepreneurs, OakNorth, has offered a loan to Lonsdale Capital Partners, a private equity firm focused on the lower mid-market. The finance will be used to acquire Simmons Bars, a London cocktail chain.
The firm has a very diverse portfolio, ranging from industrials, technology, and retail, to media, healthcare, education, and financial services. The newest addition to it is a popular cocktail bar chain with 12 sites across the capital, including Balham, Camden, Clerkenwell, Fulham, King’s Cross, Liverpool Street, and Soho. Now that the company has Lonsdale’s support, it aims to expand the sites number to 30 in the short to medium term.
“Since our founding in 2009, our investment approach has been to back businesses operating in an attractive niche, with strong and ambitious management teams. Simmons is a perfect example of this – although it is a relatively young business, it has grown impressively over the past four years under the leadership of Nick Campbell and now boasts a well-located, profitable estate. In addition to this, it is positioned in one of the fastest growing leisure segments in the UK – one that is expected to be worth £608m by 2021. With this finance from OakNorth, we will be able to provide Simmons with the capital and expertise required to help it reach its full potential,” explained James Knott, Investment Director at Lonsdale Capital Partners.
OakNorth is a UK bank that provides fast, flexible, and accessible debt finance, ranging from £500k to £25m, to fast growing businesses and established property developers. About this collaboration, Stuart Blair, Debt Finance Director, said it was the first one with Lonsdale and it reflects their commitment to supporting private equity deals in the lower mid-market.
“Despite increasing competition, chains such as Simmons Bars have managed to carve themselves a niche and build a dedicated following in the cities in which they operate. With Lonsdale’s support, Simmons will be able to pursue its ambitious growth plans of reaching 36 sites over the next four years,” he concluded.