REG - Duke Royalty Limited - Successful Exit of Investment in Royalty Partner

Duke CapitalAnnouncement

24/05/2023 07:00

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RNS Number : 4176A  Duke Royalty Limited  24 May 2023

24 May 2023

 

Duke Royalty Limited

 

("Duke Royalty" or "Duke")

 

Successful Exit of Investment in Royalty Partner

Duke Royalty, a provider of alternative capital solutions to a diversified
range of profitable and long-established businesses in Europe and North
America, is pleased to announce the successful exit of its investment in
royalty partner Instor Solutions, Inc. ("Instor" or the "Company"), a
California-based product reseller and service provider for work related to the
build-out and migration of data centres.

Highlights:

 

·       Duke has received net cash of US$11.2 million at closing,
delivering a total gain of US$2.4 million over Duke's initial investment
amount, provided to Instor in March 2023

·        This represents the sixth and most profitable exit for Duke
to date, delivering a triple digit IRR

·        The exit of Duke's investment is related to the opportunistic
sale of Instor to a private equity firm

·    Duke's financing solution supported a shareholder buyout which
transitioned equity control of the business to the current executive
management team, allowing significant value creation for the shareholders upon
the sale

·        Proceeds from the exit further strengthens Duke's balance
sheet, enabling deployment into its pipeline of new investment opportunities

 

Neil Johnson, CEO of Duke Royalty, said:

"Duke is proud to have supported the transition of the ownership of the
business to the current executive management team. Our flexible capital
solution kept the decision and timing to sell the business in the control of
the owners. This was a typical lifecycle of transaction for us, even if the
timing of the exit was quicker than usual. We are delighted to have generated
a return for our investors as well as our royalty partner, and we congratulate
them on their sale. We look forward to updating the market as we deploy into
other near-term opportunities."

Jack Vonich, CEO of Instor, said:

 

"The partnership approach and flexibility of Duke's investment solution was a
great fit for Instor. We appreciate Duke's support and their capital was
instrumental in ultimately facilitating the sale of Instor."

Duke Royalty Portfolio

A full list of Duke's current Royalty Partners is included for reference on
the Partners page of the Company's website: www.dukeroyalty.com/partners
(http://www.dukeroyalty.com/partners)

 

 

***ENDS***

 

For further information, please visit www.dukeroyalty.com
(http://www.dukeroyalty.com) or contact:

 

 Duke Royalty Limited                    Neil Johnson / Charles Cannon Brookes / Hugo Evans  +44 (0) 1481 730 613

 Cenkos Securities plc                   Stephen Keys / Callum Davidson                      +44 (0) 207 397 8900

 (Nominated Adviser                      / Michael Johnson

 and Joint Broker)

 Canaccord Genuity                       Adam James / Harry Rees                             +44 (0) 207 523 8000

 (Joint Broker)

 SEC Newgate (Financial Communications)  Elisabeth Cowell / Alice Cho / Matthew Elliott      + +44 (0) 20 3757 6880 dukeroyalty@secnewgate.co.uk

 

About Duke Royalty

 

Duke Royalty Limited provides alternative capital solutions to a diversified
range of profitable and long-established businesses in Europe and abroad.
Duke Royalty's experienced team provide financing solutions to private
companies that are in need of capital but whose owners wish to maintain equity
control of their business. Duke Royalty's royalty investments are intended to
provide robust, stable, long term returns to its shareholders. Duke Royalty is
listed on the AIM market under the ticker DUKE and is headquartered
in Guernsey.

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