Shawbrook funds London law firm Lawrence Stephens with debt package
What's the deal? ShawbrookDealroom has a profile for this one. Try Dealroom → has provided a bespoke debt facility to London law firm Lawrence StephensDealroom has a profile for this one. Try Dealroom →, refinancing its existing facilities to fund the firm's next phase of growth. The package combines a cashflow loan with a revolving credit facility, giving the firm extra working capital. The deal was introduced by Mantra GroupDealroom has a profile for this one. Try Dealroom →, part of advisory group BTG.
What's the endgame? Founded in 1997, Lawrence Stephens now employs around 200 people and has turnover approaching £30m. The firm has posted a compound annual growth rate of 30% over the past five years, and it plans to keep investing in people, technology, and its client offering.
Why the structure? The mix refinances existing obligations while leaving room to spend. "By combining a cashflow loan with a revolving credit facility, we were able to provide a structure that refinances existing obligations while preserving the headroom needed to support the firm's next phase of growth," said John Palmer, senior director, corporate leverage at Shawbrook.
What the firm says: Steven Bernstein, chief executive officer and co-founder of Lawrence Stephens, said the facility "provides the flexibility and headroom required to support our long-term growth ambitions." He added that Shawbrook and Mantra "took the time to understand our business."
The signal: Debt financing tailored to professional services firms is an increasingly common route to fund expansion without diluting ownership. For a fast-growing law firm, a flexible facility offers a springboard, as Mantra's Nimesh Sanghrajka put it, "to leap to the next level."
Read more: The Intermediary
Image credit: Robin Stott
