DUKE Duke Capital Limited

TIDMDUKE

RNS Number : 2237I

Duke Royalty Limited

11 August 2021

11 August 2021

Duke Royalty Limited

("Duke Royalty", "Duke" or the "Company")

Successful Exit of Investment in Royalty Partner

Duke Royalty Limited (AIM: DUKE), a provider of alternative capital solutions to a diversified range of profitable and long-established businesses in Europe and abroad, is pleased to announce the successful exit of its investment in royalty partner BHPC Limited ("BHP"), an Irish insurance brokerage specialising in the not-for-profit insurance space.

Highlights:

-- At closing, Duke received back net cash of GBP6.9 million, delivering an IRR of 29.4%, Duke's highest realised IRR to date

-- BHP has been a royalty partner since 2018, following Duke's initial investment of GBP4.2 million to facilitate a successful buy-out of the Irish specialised insurance broker

-- Funding buy-outs represent one of Duke's core investment strategies, as its long dated and minimally dilutive capital holds real attraction over other sources of available funding

-- Proceeds from this exit will leave Duke in a positive net cash position providing liquidity of more than GBP35 million to pursue its pipeline of near and mid-term investment opportunities

Neil Johnson, CEO of Duke Royalty, said:

"Duke's investment in BHP is a perfect example of how Duke's capital can generate a great outcome for all parties. In the case of BHP, we financed the buy-out of a strong existing business and enabled the buy-out group to acquire the majority of the equity. Not only has Duke made its highest IRR to date, but the buy-out group has also generated significant equity value for themselves, with the anticipated strong growth in their business enabling them to utilise Duke's early buy-back feature, resulting in a favourable exit for both parties. We wish the BHP board and executive team every success for the future.

"This successful exit further validates Duke's model and leaves us in a strong position to pursue our pipeline of investment opportunities in the near term."

Duke Royalty Portfolio

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

This announcement contains inside information.

***ENDS***

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

 
                         Neil Johnson / Charlie 
                          Cannon Brookes / Hugo 
 Duke Royalty Limited     Evans                                +44 (0) 1481 730 613 
 Cenkos Securities 
  plc                    Stephen Keys / Callum 
  (Nominated Adviser      Davidson / Julian Morse 
  and Joint Broker)       / Michael Johnson                    +44 (0) 207 397 8900 
 Canaccord Genuity       Adam James / Georgina 
  (Joint Broker)          McCooke                              +44 (0) 207 523 8000 
 SEC Newgate (PR)        Elisabeth Cowell/ Richard           + +44 (0) 20 3757 6882 
                          Bicknell/ Megan Kovach       dukeroyalty@secnewgate.co.uk 
 

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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END

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August 11, 2021 02:00 ET (06:00 GMT)

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