Leaders Limited in MBO deal largely funded by Bowmark

Bowmark Capital has provided financial back-up for the management buy-out and expansion of property management agency chain Leaders Limited.

Leaders Limited has been bought from RO Group with the use of £21.2 million investment from Bowmark, a mid-market private equity firm. The deal was also facilitated by a further £14 million senior debt facility provided by RBS financial sponsors and Lloyds TSB Corporate Markets. The two banks have also made £12 million in extra credit available for further acquisitions.

Bowmark’s Mark Salter explained why the deal made sense: “Leaders is a market-leading business with a strong competitive advantage. The opportunity to continue the company’s buy-and-build strategy and drive further value creation is compelling, given the fragmented nature of the lettings market.“

Leaders Limited already has 42 branches around the south of England, which manage around 15,000 residential properties for some 13,000 landlords. Salter claims that the management team behind the buy-out has a strong reputation for integrating and assimilating new acquisitions. He explained, “there are an estimated 8,500 lettings branches across the UK, the majority of which are small, independent agencies.”

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