(left to
right) Liquidity chief executive David Totney , Castlemore Securities chairman
Grahame Whateley and Mark Asplin, non-executive director of Liquidity (left to
right) Liquidity chief executive David Totney , Castlemore Securities chairman
Grahame Whateley and Mark Asplin, non-executive director of Liquidity
Brainchild of David Totney, formerly a main board director at Lloyds TSB Commercial Finance, Liquidity expects to have total advances of more than £30 million within the next five years.
The company will back growing businesses, corporate deals such as management buyouts and refinancing.
Although Liquidity made its debut in October, the team's plans had taken ten months to get to L-day when Liquidity started looking for business in earnest.
The business was launched with capital of around £24 million, which makes Liquidity the largest commercially funded new start business reported in the West Midlands.
Debt finance was provided through a loan facility from Lloyds TSB Commercial Finance but it was the private equity injection that really made it all happen.
"Initially, Mark Asplin from our corporate finance advisers Jasper Corporate Finance, played a key role in identifying and evaluating around 20 possible partners, all matched to the needs of our business,"
says Mr Totney, described as one of the most respected and liked people in the region's financial community. Also at the heart of the project are fellow directors David Yeomans and Andy Dodd.
It is commonly well known that Grahame Whateley, chairman of Halesowen-based Castlemore , one of the UK's largest privately owned property developers, is a keen supporter of West Midlands businesses."He had already taken a founding stake in Arden Partners, the corporate brokers and investment bankers. There were similarities with our own business in that we were also a new start company run by experienced people and with strong potential markets."Mr Whateley responded positively to the approach from Liquidity and agreed to take a close look at the business. Mr Totney explains:
"Having been through the lengthy process of researching possible partners and producing our business plan, we were delighted to gain such a supportive investor."
According to Mr Whateley, his decision to invest was down to the quality of the people and the strength of the business model.
"David Totney is one of the most respected and liked people in the financial community in Birmingham and the West Midlands. He has an excellent track record of winning business, building teams and delivering expectations,"says Mr Whateley. His executive director colleagues are also well known in the professional and business community and they share the same culture.
"As far as the business itself is concerned, we are convinced that there are a large number of businesses out there which could benefit from sales finance."
The first few weeks have justified the faith shown by the investors, as Mr Yeomans reveals:
"Some very good business has come our way already and we have progressed at a faster pace than we expected. There is a lot going on in the West Midlands and there are more businesses that are facing a challenge to sign up for a kind of finance that will be compatible to their outlook. They are also looking for a user-friendly source of finance as well as a close relationship connection with a funding provider."Mr Whateley now has substantial investments in a number of companies in addition to Castlemore, Liquidity and Arden Partners, although he and his team at Castlemore are on the look-out for more opportunities.
"We will consider most sectors apart from technology and we prefer established businesses but the important thing is that the business dynamics must be right,"he says. [close]