Skerritts, a portfolio company of Sovereign Capital, has been refinanced


Skerritts is an award winning and vertically integrated independent financial adviser that provides independent financial planning and investment management-based services within the UK. Founded 30 years ago, the business now advises approximately 4,000 private clients and caters to group schemes and corporate clients. The business was acquired by Sovereign Capital Partners in March 2021 and has grown considerably under Sovereign’s ownership, including seven bolt-on acquisitions and significant investment in the operating platform and employee base. Skerritts now has more than £1.5 billion assets under management with approximately 80 employees (greater than 20 financial advisers). Skerritts is headquartered in Hove with offices in London and across the South of England, with plans to expand nationally.

The Deal

Lincoln International advised Skerrits on a competitive refinancing of its existing facilities while increasing the level of follow-on funding available to the business to ensure that the successful buy-and-build strategy can continue, and the healthy pipeline of acquisition opportunities can be actioned. Lincoln met the company and investor’s key objectives by demonstrating the excellent qualities of the business, including a well-developed and competitive client-centric operating platform, strong compliance and governance structures coupled with an impressive management team and a proven and successful mergers and acquisitions strategy. One of the key objectives was to ensure a balanced and flexible follow-on funding regime, so during discussions with interested lenders particular focus was given to permitted acquisitions and incurrence tests leading to a highly bespoke and flexible structure that both the ultimate mandated lender and the company were comfortable with.

Charles Sparrow, Chief Financial Officer of Skerritts, commented, “It was a pleasure to work with the Lincoln team again. They have a great knowledge of the market and managed the process brilliantly from start to finish. The facilities secured with their help will support our journey to become Britain’s premier Chartered Financial Planner with expert in-house investment management.”

Our Perspective

Aude Doyen, Lincoln International Managing Director who led the transaction, commented, “In the current higher-rate environment, refinancing and providing growth capital to borrowers with ambitious buy-and-build or roll-out strategies can be particularly challenging. Finance providers are focused on cashflow metrics that the frequent re-leveraging events and in many instances deferred considerations or earn-outs structures can impact. That’s where we bring value – our experience in financing growth allows us to tailor commercial terms in such a way that we get deals done. And it’s always great to work with repeat clients!”

Connect with a Senior Team Member
We are delighted to have worked with Lincoln on the refinancing of Skerritts. Our unique focus on an all-employed advisor model and the full integration of acquisitions into our target operating model has resulted in a significant pipeline of acquisition opportunities. The process run by Lincoln facilitated an exciting debt solution from Tresmares which will allow us to fulfil our vision over the next couple of years. Many thanks to the Lincoln deal team.
James Dargan
Investment Director at Sovereign Capital

Meet our Senior Team

Any information or testimonials contained in this post may not be representative of the experience of other clients and is no guarantee of future performance or success.