Duke Capital offers a hybrid financing solution that provides business owners with access to capital while allowing them to maintain control of their companies. This financing model combines elements of private equity and private credit, giving it more flexibility compared to traditional debt or equity-based options. Duke Capital’s approach caters to the unique needs of businesses looking for long-term financial solutions without the typical constraints of conventional financing.
Duke Capital’s evergreen capital structure is particularly effective for management buyouts (MBOs) and buy-and-build strategies. With this model, business owners can make monthly payments using their operational cash flow, avoiding large, burdensome principal repayments. Furthermore, the flexibility of the financing allows owners to control the timing of any necessary refinancing. This single-source financing solution significantly reduces the risks associated with refinancing while ensuring that Duke Capital’s interests are closely aligned with those of the businesses it supports.
In addition to benefiting business owners, Duke Capital focuses on delivering attractive risk-adjusted returns for its shareholders. The company has a strong track record of providing consistent dividends and achieving these objectives across various market conditions.
Duke Capital’s flexible financing can be applied in several ways. For management buyouts, it allows experienced management teams to take majority ownership of their businesses while retaining strategic control. In the case of buy-and-build strategies, the financing structure accommodates multiple drawdowns, which can be used for acquisitions. The firm also supports shareholder restructuring, enabling owner equity sell-downs or minority buyouts.
For companies looking to refinance existing debt, Duke Capital’s long-term corporate mortgage is often an attractive alternative to short-term debt options. This solution helps businesses avoid the pressure of frequent refinancing and gives owners the ability to exit their businesses on their terms by timing the sale according to their preferences.
As a direct lender, Duke Capital is particularly well-suited to serving the lower mid-market, which includes many small and medium-sized enterprises (SMEs) that are often overlooked by traditional lenders. Duke Capital’s bespoke approach is designed to address the unique needs of this underserved market segment. The company works closely with business owners, providing transparent, tailored capital solutions that align with the growth objectives of each business.
Duke Capital offers a financing model that not only supports business growth but also ensures that owners retain control over their companies. With its flexible, long-term approach, Duke Capital stands out as a reliable partner for businesses seeking sustainable financial solutions.
Duke Capital Limited (LON:DUKE), formerly Duke Royalty Limited, is a Guernsey-based provider of hybrid capital solutions for small and medium-sized enterprises (SME) business owners in the United Kingdom, Europe and North America, combining the features of both equity and debt.
