- A USA domiciled gaming equipment business whose principal client was a UK located bookmaker retained Rexon to seek expansion capital in the form of private equity. After Rexon successfully completed two private equity rounds, we advised the client to list its shares publicly on Britain’s Alternative Investment Market (AIM). Rexon led the listing process that resulted in massive oversubscription; the company went to the market to raise £19.0 million and received £148.0 million in firm orders for the shares. Several years later Rexon was instrumental in the sale of the company to one of the USA’s largest gaming groups.
Here are three illustrative examples of Rexon clients that have retained my form to raise funds in London, after they tried and failed to raise capital from US-located sources:
- A US company mining gold in Colombia could not raise capital in the USA because in the perception of US investors, Colombia country risk is unacceptable. But a London finance house with an expert in gold mining took a different view. The price of gold was rising, and my client was able to produce what is known in London as a Competent Persons Report that verified the deposits. When due diligence confirmed the expertise of Rexon's client’s management to extract the metal, the company obtained its funds.
- A US-based medical device company could not raise capital in its home country because it needed funds to complete animal trials. The conventional wisdom among US investors is that funding a medical device business is unacceptably risky until its animal trials are behind it and human trials have begun. In London four different Gatekeepers with expertise in the field concluded that the need for the device by the National Health Service was so acute that the risk of failing animal trials was perceived to be worth taking.
In common with other capital markets, London’s public financial sector responded negatively to the shock waves of the financial crisis that began in mid-2007. When the public markets became inhospitable, the Gatekeepers turned their attention to the private equity sector. Private equity investment activity has flourished in London in recent years.