Alcentra makes mezzanine investment in Mountain Warehouse

Sub investment-grade corporate credit specialist Alcentra has invested in Mountain Warehouse, the UK’s largest outdoor clothing and equipment store.

A mezzanine loan from Alcentra will fund the buyout of minority shareholder LDC by Mountain Warehouse’s management, and will provide capital for the next phase of growth. The management team, lead by founder and CEO Mark Neale, plan to expand to 300 stores across Europe and to grow their online business, which is currently shipping to more than 100 countries. Growing from a single store in Swindon in 1997, Mountain Warehouse now has 169 stores in the UK and turned over £75.6 million in the year to February 2013.

Neale commented: “After four rounds of private equity over 15 years, we were looking for a different solution this time and Alcentra has been able to provide that. Alcentra worked very quickly and decisively, which enabled us to complete the transaction with minimum disruption to the business.” The investment is consistent with Alcentra’s investment strategy of lending to attractive UK mid-market companies that are experiencing less support from traditional banking.