Wealth Club is delighted to announce realisations from two investments arranged by Seneca in the space of a month, returning capital and profit back to investors.
August saw the £10 million sale of a purpose-built store fully let to Tesco, delivering c.20% profit in less than two years. Wealth Club members invested alongside Seneca to fund the initial £8 million purchase.
In addition, the first Management Buy Out (‘MBO’) ever backed by Wealth Club members, specialist textile wholesaler Whyte & Ivory, was successfully refinanced last month following record sales growth. This saw Wealth Club investors’ loan notes repaid in full with interest. Investors also retain their equity interest in Whyte & Ivory which provides the opportunity to realise further profits on exit.
Alex Davies CEO and Founder of Wealth Club said, “In the last three years Wealth Club investors have backed four buy outs, investing just under £3 million in total and have also invested £2.8 million in property deals to date.
Whyte & Ivory was our very first Buy Out investment and we are delighted with the outcome for our clients. Within three years, our investors have had all their capital returned with interest from this Seneca arranged investment. Wealth Club investors also have the prospect of making strong capital gains from the eventual sale of their equity interest.
With the Tesco deal, securing a successful exit in uncertain times is impressive and we are delighted to secure a profitable and quick turn on investors capital.”
Wealth Club backed Whyte & Ivory has broken through £10m revenue this year continuing its year-on-year growth track record.
In a deal led by Seneca, the specialist investment, lending and advisory business based in the North West, Wealth Club is pleased to report that its private equity investment, Whyte and Ivory Ltd, continues its track record of year-on-year growth – breaking through £10m of sales this year.
The textiles business which focusses on wholesale contract curtain fabrics and curtain linings, has seen growth in its UK business, which exports a considerable proportion of sales into the EU, and in Whyte & Ivory LLC, its subsidiary based in North Carolina.
Private investors from Seneca and Wealth Club, which hold a combined 30% stake in the North West based business, invested in Whyte and Ivory in 2019 to support the founders in their plans to build out the team and expand its global customer base.
In the last three years US Sales have grown 650% – reward for the investment made in a North Carolina warehouse and £1m in stock to support key US accounts and markets. The business is now adding US customers at an average of one per week.
Since 2019, Wealth Club investors have invested just under £3 million in property deals.
This deal saw the purchase of a supermarket in Immingham, Lincolnshire in 2020. The modern, purpose-built store was developed in 2014 and is fully let to Tesco on a long-term lease with a break option in November 2029. The sale was agreed in July 2022 and has delivered a c.20% profit to investors in just two years.
Wealth Club Investors were offered the opportunity to invest alongside Seneca in the purchase of the Tesco supermarket with the investment benefiting from 10% annual capital repayments and a potential profit upon the successful exit. The exit has been achieved significantly quicker than the original plan and the attractiveness of securing this substantial profit, well ahead of the timetable, was heightened by current economic headwinds.
This is the second successful exit in the last 12 months for Wealth Club investors from a property investment having previously exited another Seneca arranged property investment in Macclesfield, Cheshire in 2021, generating a c.125% return for investors in a similar timeframe.