Home furnishings retailer Dwell has secured £5 million from the private equity house KCP.
Home furnishings retailer Dwell has secured £5 million from the private equity house Key Capital Partners (KCP) in exchange for a minority stake in the company.
The fundraising will finance the launch of 33 new high street stores over the next four years. Dwell currently has 19 stores across the UK in addition to concessions in the department stores Selfridges and House of Fraser.
Aamir Ahmad, managing director of Dwell, says: ‘KCP will prove to be a key strategic partner as we look to boost brand awareness and expand the business, beginning with five new stores in the UK in 2011. The timing is perfect for expansion, both in terms of the life cycle of the business and conditions in the commercial property sector, where pricing is currently extremely competitive.’
London-based Dwell was founded by Ahmad in 2003 as a mail order furniture business. In 2009 the company had sales of over £25 million.
Under the terms of the deal, KCP partner Owen Trotter will join the board of Dwell as non-executive director. Dwell was advised on the transaction by Clearwater Corporate Finance.
KCP makes investments of between £1 million and £10 million in profitable, growing UK companies. The firm has made seven investments since closing its maiden £100 million fund.