Westbrooke Alternative Asset Management, in partnership with Rand Merchant Bank (RMB), is pleased to announce the first close of the Westbrooke Dynamic Opportunities UK Fund II Plc (WDO UK Fund II), with £155m (c.R3.8 billion) of capital now available to invest in hybrid capital transactions across the UK lower-middle market.
WDO UK Fund II underscores Westbrooke’s expertise in delivering innovative, risk-managed investment solutions to sophisticated investors. The fund provides a debt-led approach to UK private equity investing, targeting to pay investors an annual cash yield of 6-8% and to generate an overall annualised return of 15%+ p.a. in GBP (net of all fees and costs).
The fund provides bespoke unitranche and hybrid capital financing solutions to UK lower-middle market businesses. In addition, Westbrooke often negotiates equity upside participation through instruments such as preferred equity, equity warrants, and co-investments.
Hybrid capital investing is particularly compelling in the current market environment, characterised by high but declining UK interest rates, limited access to capital, and a retreat by the high street banks. This creates opportunities for alternative lenders such as Westbrooke.
