Wheatley Associates, a specialist software company, has undergone a management buy-out backed by private investor syndicate Hotbed.
Wheatley Associates, a specialist software company, has undergone a management buy-out (MBO) backed by private investor syndicate Hotbed.
The company, which provides software that helps utility companies and housing associations manage gas and electricity meters, received investment of £4.7 million from Hotbed ‘and co-investors introduced by Hotbed’ to back the MBO.
Gary Robins, chief executive of Hotbed, comments, ‘Whilst the company has historically focused on building on existing client relationships the new management team will adopt a more proactive growth strategy, placing greater emphasis on sales and marketing.’
Some of Hotbed’s members are investing under the Enterprise Investment Scheme (EIS), which offers a range of tax breaks, while others will provide loan notes, secured on Wheatley’s assets, which provide an annual yield of 5 per cent as well as an element of downside protection.
Robins adds, ‘EIS eligible investment opportunities have proved popular with our members, who often tell us that this plays a considerable role in their decision to invest.’