Portfolio Updates

KRM22 raises £3m to strengthen balance sheet

KRM22 has announced a new £3m secured convertible loan facility arranged by Kestrel to strengthen the balance sheet. The loan will be used to repay £0.85m of existing facilities as well as providing KRM22 with a stronger balance sheet and access to both working capital and growth capital to support its growth plans.  At the date of the agreement, Kestrel held approximately 20% of the equity capital of KRM.

The three-year, fully secured loan facility has a 9.5% annual coupon and can be converted into ordinary shares by Kestrel at any time before expiry at a conversion price of 38p per share.

Keith Todd CBE, Executive Chairman and CEO of KRM22 plc, commented:  “This facility supports our growth strategy – allowing KRM22 to make additional investments in critical resources and to support ongoing working capital requirements.”

Oliver Scott from Kestrel commented: “We’re really pleased with this investment. The team at KRM22 has developed a strong customer proposition over the past two years. We’re confident that this additional capital will allow KRM22 to accelerate its growth and deliver value for all stakeholders.

Kestrel Insight
KRM operates an ARR subscription model providing capital market firms with access to risk management software on its cloud only Global Risk Platform.  The risk management software market is fragmented with a few major providers sitting alongside many hundreds of smaller niche providers of what is often mission critical software.  KRM has already bought several of those niche players, achieving £4.3m of ARR from a combined organic and acquisition-based growth strategy.  The growth prospects of the market in which KRM operates are attractive as firms seek to better automate and control risk, and we particularly like the SaaS revenue model. We also note that the executive chairman has a strong history in SaaS delivery from prior success at FastFill, another Kestrel investment. FFastFill was purchased by ION Trading for £106m in 2013 in a recommended cash offer. Click here to read the FFastFill case study


Kestrel’s Portfolio Updates should neither be construed as investment research, nor the provision of investment advice, nor a recommendation. This article should be viewed as short term commentary only based on the latest economic statistics, company results or information on upcoming releases or events. It is only a brief unsubstantiated summary of Kestrel’s opinion on such information as at the date of publication and no reliance may be placed upon any contents of this article by the recipient.

Back to News