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Sandton Capital Partners (Europe) Ltd.

Sandton delivers finance for UK administration funding

Private equity and special situations institutional investor Sandton Capital Partners (“Sandton”) has committed more than £20 million in funding to Administrators and Insolvency Practitioners (IPs) over the last 18 months.

Andy Foster, Senior Advisor at Sandton explains: “Insolvency levels remain elevated as evidenced in recent Government figures*, due to the rise in creditors’ voluntary liquidations (CVLs). At Sandton we offer IP’s a number of tools to assist in maximising the outcome for the various stakeholders involved by virtue of Admin Express, our dedicated, streamlined funding solution for administrators, liquidators and receivers.

We can help by financing working capital or other trading shortfalls in order to allow IPs more time to achieve an optimal outcome, or by funding litigation in pursuit of proceedings against those who have not acted in the best interests of the business or its creditors.

If, for instance, a significant employer faces insolvency and may otherwise have to be shut down immediately, our lending provides breathing space, enabling an IP to maintain appropriate staffing levels, whilst funding ongoing costs, thereby bridging say a sale of the business, and maximising returns, maintaining employment, and avoiding value destruction or disruption for a purchaser.

In such situations time is of the essence – as are clearly defined financing costs and parameters. We provide a well-established and flexible mechanism potentially releasing funds within days, enabling the IP and management team to focus on the myriad of other issues they face at these challenging times.

Traditional sources of insolvency financing have become more prescriptive and less responsive, threatening wider economic recovery. Our committed funding line provides access to short or medium term funding, including Revolving Credit Facilities, for amounts ranging from £400k to £40m.

Sandton has a proven track-record in in having delivered more than £20 million in recent transactions; maximising asset values and / or providing cost capped facilities in order to pursue litigation, investigate fraudulent activity pre-administration and / or fund trading working capital and costs.”

*The recent National Insolvency figures published (13 Oct 2023) by the Government’s Insolvency Service highlighted that company distress is still high in the UK. Data revealed the number of registered company insolvencies in September 2023 was 1,967, 17% higher than in the same month in the previous year (1,688 in September 2022). This was higher than levels seen while the Government support measures were in place in response to the coronavirus (COVID-19) pandemic and also higher than pre-pandemic numbers. The company insolvencies consisted of 255 compulsory liquidations, 1,576 creditors’ voluntary liquidations (CVLs), 125 administrations and 11 company voluntary arrangements (CVAs). Numbers of compulsory liquidations, CVLs and administrations were all higher than in September 2022. The increase in company insolvencies has been driven mostly by CVLs, while compulsory liquidation and administration numbers have increased from historically low numbers seen during and immediately after the pandemic, returning to close to 2019 levels.