Welcome To
Welbeck

Welbeck specialises in Convertible Loan Notes for AIM listed companies or those in the process of being admitted to the market.

Our clients are typically looking to support a major growth event such as entering a new market, launching a new product or making a new acquisition.

The investors we work with are most of the top tier institutional investors in the AIM market.

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Expertise Based On Experience

As at March 2017
  • Members of the Welbeck team have introduced £90M of capital to private and public companies.
  • Of the £33M in transactions that have exited to date, the IRR has been 20% with a return of £43M.
  • Current transactions represent £57M of invested capital. Returns to date reflect interest payments.
  • All the CLNs benefit from senior security and pay an annual coupon of 8 – 10%.
  • Investors in the Convertible Loan Notes have included Miton Group, Axa Framlington, Herald Ventures, Octopus Investments, City Financial, Heritage Capital Management and Harwood Capital LLP.

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We believe that Welbeck is the most active player in the CLN market and as at March 2017 we have already worked on over £15M of investment.

28th April 2017

Convertible Loans

The key points for a Convertible Loan Note are:
  • Amounts £1M to £20M
  • 5-year duration
  • Secured through a “covenant lite” structure
  • Pays a coupon, typically 8% - 10% per annum, quarterly in arrears
  • Have the right to convert into equity at a 20% - 30% premium to the placing price, not a discount, and so reduce the dilution effect of the fund raise to existing investors
  • Can be structured to be VCT compliant
  • Our CLNs are normally listed on a recognised exchange, for which we prefer The International Stock Exchange (TISE) to ensure they qualify as an acceptable security for institutional investors.
  • Throughout the process, we always work closely with your Nominated Advisor and Broker.
Track Record