The deal

Software developer Kallik is set to ramp up its growth plans after FRP Corporate Finance’s Debt Advisory team secured new debt facilities to support its investment in new technology.

Birmingham-based Kallik is a labelling and artwork management software company, which serves the medical device, pharmaceutical, chemical, cosmetic, and food and beverage industries. It has a global presence, with customers in the UK, India, US and Europe.

The business was founded in 2001 and entered a new phase of growth after being acquired by private equity firm FPE Capital (FPE) in 2019.

Our Debt Advisory team was appointed as lead adviser to Kallik, to secure debt facilities in support of further investment for growth, and to subsequently manage the negotiation process.

Our team, led by Partner Simon Sherliker, alongside Director Jo Power and Manager Karris Giani, secured debt facilities structured against Kallik’s annually recurring revenues (ARR).

Simon Sherliker, Partner at FRP Corporate Finance, said: “This transaction is one of a number of ARR-based funding packages we have raised – which sees funds granted on the basis of an enterprise’s recurring revenue streams and their expected future income – and is reflective of the strong credentials we have built in this space. High growth, tech-enabled businesses like Kallik are highly sought after by private equity investors in the current market, and in response we are seeing lenders increasing their product offering to support this profile.

“This is the latest transaction we’ve supported FPE on, as they continue to back the growth of their investment portfolio. It was great to work with the team, and we wish them all the best for the next stage of Kallik’s growth journey.”

Harriet Hunt, Investment Manager at FPE Capital and Non-Executive Director at Kallik, said: “These debt facilities will enable Kallik to complete its investment in new technologies that will help to accelerate growth, with a focus on driving new client acquisition.

“The FRP Corporate Finance team brought a great depth of experience to the table, and their strong debt advisory credentials made them the obvious choice as advisers. The team has raised funds for other FPE portfolio businesses on this basis, and the quality of their advice is always exceptional.”