NorthEdge Capital has backed the MBO of Phoebus Software Limited (“PSL”), marking the second investment from NorthEdge’s SME Fund I (“SME Fund”).
In the increasingly fast-paced financial services sector, PSL delivers software and services that enhance the origination and account servicing processes across a range of products, including residential and commercial mortgages, equity release, bridge loans, asset finance and savings.
Headquartered in Solihull, West Midlands, the company has a strong client portfolio of multinational financial services firms across the building society, banking and loan servicing sectors. Clients include Atom Bank, One Savings Bank and Pure Retirement. The business was founded in 1989 as a subsidiary of Heritable Bank before becoming fully independent in 1997, and currently employs 130 staff.
NorthEdge’s investment backs existing CEO Paul Hunt in this primary MBO and will enable Hunt and his team to spearhead additional investment of resource and capital into PSL’s product offering. Andy McEwan, formerly of Oracle and IFE Services, will join the business as Non-Executive Chairman.
The investment was led by NorthEdge’s Rob Freer, Head of Midlands, and Investment Director, George Potts, with Potts joining the Board. This is the second investment since the close of NorthEdge’s £120m SME Fund in July last year. The Fund targets businesses across all industry sectors in the Midlands and North of England, investing £2m-£10m of equity in management buy-outs, equity release, growth and development capital and buy-and-build opportunities.
The investment was completed with corporate finance advice from Cooper Parry and legal advice from Mills & Reeve. Financial and Commercial Due Diligence was completed by RSM and CIL respectively. Other due diligence included Technology (Crosslake), Organisational (Catalysis), Sales (Mark Cappell), Insurance (Marsh) and Tax (KPMG). Evolution CBS and Mackrell Turner provided advice to the Vendors.
Paul Hunt, CEO at PSL, commented:“After sustained growth and success over many years, our business is ready to move to the next level. In working with NorthEdge, we have an investment partner who will provide backing to ensure that our products and services continue to be at the forefront of market requirements.”
Rob Freer, Head of Midlands, NorthEdge Capital, said:“It’s clear to see that the team at PSL is valued by their clients and have built a strong reputation over many years. We look forward to supporting Paul and his team through further investment in product capabilities, to execute on an exciting growth strategy centred on delivering great systems into their high-growth client-base.”
George Potts, Investment Director, NorthEdge Capital, commented: “This is the latest regional tech company we have backed, following on from our investments in Sumo Digital, Utiligroup, Cloud Technology Solutions, Cubic Motion, Pimberly and iPortalis. We are proud to continue building upon our successful track record of playing a part in the growth, internationalisation and development of UK-tech, through our support of Paul and the team at PSL.”
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