TDC makes first Integrated Finance investment in the MCG Group


25/11/2021

The MCG Group has secured a £20 million funding package from Tosca Debt Capital LLP (“TDC”) to support its ambitious growth plans.

The MCG Group was recently named as one of ‘The UK’s 100 Best Mid-Sized Companies to Work For’ as well as one of ‘Recruitment’s 40 Best Companies to Work For’ by the Best Companies List, with nearly 300 employees across the Group. It offers recruitment, consultancy and project-based solutions within construction, education, healthcare and technology sectors in the UK and internationally.

TDC is a private debt fund, headquartered in Manchester, with a focus on supporting the growth plans of the UK lower mid-market.

The transaction, which follows three acquisitions made by The MCG Group in the last 12 months as part of its 5-year growth strategy, will see Mat Deering, Partner at TDC, taking a seat on MCG’s Group board.

The deal is the first example of TDC’s new integrated finance (“IF”) offering, designed to offer structured debt financing alongside minority equity investment, providing MCG with funding for a range of uses including refinancing, shareholder reorganisation, and funding current and future acquisitions.

Mat Deering, Partner at TDC, said:

“We are delighted to welcome MCG to our growing investment portfolio of some of the UK’s most ambitious mid-market businesses. We have been impressed with the outstanding progress MCG has made to date in building a business of real scale and breadth, we’re excited to be able to back CEO Colm McGinley and the team’s ambitions to drive growth in the years ahead, both organically and through further acquisitions. The deal demonstrates the capabilities of our new IF offering to unlock opportunity for ambitious companies with highly flexible, integrated debt and equity financing.”

Colm McGinley, CEO of The MCG Group, said of the acquisition:

“Our business is on a steep growth trajectory, and we’ve set our sights high. Securing this funding provides our group with a fantastic opportunity and platform on which we can build on. It will see us boldly move towards reaching the goals set out within our next 5-year plan”

Spectrum Corporate Finance, Trethowens Solicitors and DSA Tax Advisory advised The MCG Group on the fund raising. TDC was advised by DLA and Grant Thornton Tax Advisory, with financial due diligence on the transaction undertaken by Saffrey Champness and Cortus Advisory.

Posted by

Mat Deering
Partner

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