Royal Bank of Scotland Debt Ventures has provided funding to enable Nightfreight Group, an overnight carrier for non-standard freight items, to complete an £89m secondary management buyout. The deal sees original investors Barclays Private Equity, which backed the £43m public-to-private in 2001, substantially realise its investment while retaining a minority equity stake in the business. The company has generated 34% growth since the original buyout.
Royal Bank of Scotland Debt Ventures arranged £77m of senior, mezzanine and loan stock facilities to fund the transaction. Barclays Private Equity provided the balance of the funding re-investing to acquire a minority stake. Royal Bank of Scotland Debt Ventures will also control a significant minority equity stake and be represented on the board.