Boundary Capital, a private equity vehicle headed by financier Niall McFadden, plans to float on junior stock markets in Dublin and London within the next three weeks. Ciarán Hancockreports.
An investment vehicle called Boundary Capital plc will be floated on the IEX in Dublin and the Alternative Investment Market (Aim) in the UK.
Three of Boundary's directors - Mr McFadden, commercial chief Declan Cassidy and Martin Cole - will contribute €25 million to acquire equity in the new company.
An additional €25 million will be raised from other investors, giving the company a net asset value of €50 million.
The Dublin-based company is currently undertaking an investor roadshow. Davy has been chosen as the stockbroker to the flotation. The publicly-quoted company will act as an investment vehicle with a new company called Boundary Management Limited being set up to manage the investments.
Boundary Capital has told potential investors it will seek out investment opportunities in Britain and Ireland. It will look for companies that are highly cash generative, have good market positions and a good track record.
Boundary recently agreed a deal to acquire the classified newspaper Buy & Sell from Associated Newspapers for about €20 million. It is also a backer of iRadio, a consortium that was last year awarded a regional youth licence for the north west. Set up in 2002, Boundary focuses on property and corporate transactions operating primarily as a principal. It also undertakes advisory projects. The group has closed transactions valued in excess of €2.5 billion in the areas of retail, property, business services and educational materials.
Mr McFadden was a key player in the Barry O'Callaghan-led management buyout of Riverdeep when it was a listed company. He was also a lead adviser on the taking private of retailer Arnotts, where he is now a director and shareholder. Mr McFadden was also instrumental in advising Arnotts on its acquisition of properties adjoining its Henry Street department store and its ambitious plans to create a new retail quarter in the area.
In the past two years, Boundary has also brought Veris, a property management company, and Siteserv, which provides fencing and other services to the construction industry, to the stock market. Boundary's interests in both companies are expected to be rolled over into the quoted investment vehicle.
Boundary is also involved in a joint venture property fund with Redquartz, the property development vehicle of Paddy Kelly and his son Simon. Called RQB, the joint venture is chaired by Mr McFadden.
Boundary and RQB were involved together in the purchase of Club Company Holdings, which operates a chain of 10 country clubs in the UK.
Mr McFadden held positions at investment bank Morgan Stanley and worked for Larry Goodman and oil company Tedcastles before setting up Boundary.
