The North West Fund for Development Capital (NWFDC) has led an investment round into healthcare recruitment business Castlerock Recruitment Group.
NWFDC, which is managed by YFM Equity Partners, is a sub-fund of the £185 million North West Fund, financed by the European Development Fund and the European Investment Bank. Financial details of the deal are undisclosed.
Joseph Bergin, head of the North-West team at YFM Equity Partners, comments, ‘The investment into Castlerock is the third investment from the NWFDC but the first investment of our new MEZZ product.’
Bergin says the MEZZ product fills a gap between conventional bank funding and private equity funding, with repayments made over a period of up to seven years.
The new investment is to be used by Castlerock to expand its business by employing additional staff on the back of recent contract wins. Additionally the funds will provide working capital ammunition in the future.
The Merseyside-headquartered company has ten offices and currently employs 57 staff, including 31 recruitment specialists. Existing contracts with the Ministry of Defence, NHS and HM Prisons now sit along new contract wins including the General Healthcare group.
Ian Munro, CEO of Castlerock, adds that the latest cash injection will enable the company to grow by increasing staff numbers.