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Private Credit Fund
An independent practice case, not supplied or endorsed by the named firm.
Structure a preferred-equity investment to fund an alarm-monitoring contract acquisition and assess the investor's downside protection.
Structure a preferred-equity investment to fund an alarm-monitoring contract acquisition and assess the investor's downside protection. You have three hours to prepare and one hour to present. Value the recurring revenue, propose investment terms and model returns as the company buys further portfolios.
You are on the fund's structured-equity deal team, which provides preferred and structured capital to companies that want growth capital without giving up control. Hatherop's management has approached the fund. They want to buy the portfolio on 31 December 2025 and put the balance of the money on the balance sheet, and they believe the existing business, with £4.04m of RMR at the end of 2025, is worth £275m.
You have three hours to prepare and one hour to present to the deal team. You have the company's historical and projected financials, a transaction and operating-model template, a sheet of precedent transactions and the condensed information pack on this page (drawn from the company's investor presentation and an earlier sale memorandum). The internet may not be used, including to look up the company.
Part 1 is a set of business questions for which bullet points are enough: they are the outline for your presentation. Part 2 is the investment proposal, supported by the Excel model.
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