SME Capital funds first MBO for 2112 Communications

2112 Communications provides innovation, creation and performance marketing solutions, servicing clients in global investment and financial services organisations, helping evolve brand stories, deliver campaigns and digital innovations.

Established in 2012 by Phil Hawkins and backed by Porta Group Plc (subsequently acquired by SEC Newgate), the business has grown its reputation in the market and now works with some of the largest global financial institutions across Europe, America and Asia.

The agency provides innovation, creation and performance marketing solutions, servicing clients in global investment and financial services organisations, helping evolve brand stories, deliver campaigns and digital innovations.

Over the last decade the agency has a rapidly built a strong reputation and loyal client base, working with some of the largest international financial institutions across the UK, EMEA, APAC and US. Over the last couple of years the agency has evolved significantly enhancing its propositions and capability suites.

The MBO will mean that the new board consists of two original members, its Founder and CEO, Phil Hawkins and Andrew Golding, as Chief Strategy & Commercial Officer, with Aaron Williams, joining the board as Chief Financial Officer. The team have worked closely together over the last 3 years to develop the business and secure the MBO.

SME Capital has agreed to provide a bespoke 5-year funding structure to support the MBO.

Commenting on the funding arrangement, 2112 Communications CEO, Phil Hawkins, said

“A key element of our MBO plan was to select the right strategic funding partner. We are delighted that SME Capital agreed to not only fund the MBO but enable our ambitious growth plans internationally. SME’s understanding of our business and sector plus their commitment to supporting our future made the selection of them as our funding partner very easy.“

SME Capital Regional Director for London & South East, James Lowe, said,

"Since we first looked at this opportunity it was clear the business is in a unique position supporting an impressive client base across global investment and financial services organisations. We are delighted to have supported 21:12 with a finance package that enabled the management buyout of it’s parent business, and we look forward to building a successful partnership as we seek to support management with their strategic objectives.

SME Capital’s funding will enable the team to drive the business forward into the next stage of its development.”

Rupert Rawcliffe of SRC Corporate Finance, who assisted in structuring the undisclosed bespoke lending package, added, “SME Capital were a delight to work with, and not only demonstrated a real hunger to secure this deal as part of the competitive process, but were also proactive and pragmatic throughout the due diligence and legal process, ensuring a great result for 2112 and an excellent result all round."

SME Capital were supported by Katrina Groark of Gateley Legal, who provided legal advice.

If you would like to discuss MBO financing in more detail or our wider funding capabilities do get in touch.

About SME Capital

SME Capital was founded to support the growing number of SMEs who face difficulty or frustration in accessing capital through traditional methods. We understand the importance of real and trusted relationships in the SME lending market and have dedicated Regional Directors based across the UK. By combining traditional lending expertise with the latest in data analytics, we are supporting established UK SMEs with their long-term objectives and business ambitions.