Follow-On Investment into Existing Royalty Partner

RNS Number : 2989D

Duke Royalty Limited

02 March 2022

 

2 March 2022

Duke Royalty Limited

("Duke Royalty" or "Duke")

Follow-On Investment into Existing Royalty Partner

Duke Royalty, a provider of alternative capital solutions to a diversified range of profitable and long-established businesses in Europe and North America, is pleased to announce a follow-on investment of £1.55 million into existing royalty partner Tristone Healthcare Limited ("Tristone") to fund its latest acquisition.

Tristone currently provides specialist residential and domiciliary care in two end markets: i) high acuity adults with severe mental, physical or learning disabilities; and ii) care leavers, aged 16-19, who are transitioning out of social care and into independent living.

Highlights:

• Duke's funds will facilitate Tristone's acquisition of Seaside Care Homes Limited ("Seaside"), a specialist care home based in Essex, providing long-term residential care to young adults who have complex healthcare needs
   
• The financing increases Duke's total investment into Tristone to £12.1 million. The terms are the same as Duke's initial investment into Tristone, including a starting yield of 13.5% and the normal +/- 6% annual adjustment factor
   
• Seaside represents Tristone's first acquisition supported by Duke, in line with Tristone's stated buy and build strategy
   
• Tristone has a deep understanding of the demands of social care and support and has extensive experience of investing in and building businesses of this nature, having supported a number of different care businesses since formation in 2015
   

Neil Johnson, CEO of Duke Royalty, said:

"Duke is proud to support Tristone's plans to grow a simple and care-centric community of businesses that focus, first and foremost, on delivering outstanding care and support. The acquisition of Seaside will represent another example of Tristone supporting existing management to unlock further value for all stakeholders and positively impact more service users' lives."

Further information regarding Seaside

Seaside was established in 2008, and is a specialist care home based in Essex, providing long-term residential care needs to young adults who have complex healthcare needs in a home environment, including those who are dependent on technology or wheelchairs. Seaside was founded by Amanda Owen and Sarah Crow, who were both formerly employed by the NHS as qualified nurses. Amanda and Sarah will be staying on in the business post-completion to facilitate a comprehensive and smooth transition.

Duke Royalty Portfolio

A full list of Duke's current Royalty Partners are now included for reference on the Partners page of our website: www.dukeroyalty.com/partners

***ENDS***

For further information, please visit www.dukeroyalty.com   or contact:

Duke Royalty Limited	Neil Johnson / Charles Cannon Brookes / Hugo Evans	[phone]
Cenkos Securities plc  (Nominated Adviser and Joint Broker)	Stephen Keys / Callum Davidson / Julian Morse / Michael Johnson	[phone]
Canaccord Genuity (Joint Broker)	Adam James / Georgina McCooke	[phone]
SEC Newgate (PR)	Elisabeth Cowell/ Richard Bicknell/ Max Richardson	[phone] [e-mail]

About Duke Royalty

Duke Royalty Limited provides alternative capital solutions to a diversified range of profitable and long-established businesses in Europe and abroad. Duke Royalty's experienced team provide financing solutions to private companies that are in need of capital but whose owners wish to maintain equity control of their business. Duke Royalty's royalty investments are intended to provide robust, stable, long term returns to its shareholders. Duke Royalty is listed on the AIM market under the ticker DUKE and is headquartered in Guernsey.

 

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