The £290m Literacy Capital investment trust has completed a refinancing of one of its largest portfolio companies with new lenders.
The portfolio company, which Literacy Capital refused to disclose, is set to return £20m in cash to the trust, along with some minority shareholders exiting to give Literacy a larger shareholding in the firm.
The trust said the cash will be used to pay down its revolving credit facility debt and fund future investments.
“This refinancing represents a further example of Literacy’s portfolio companies growing maturity and interest from institutional funders in the Fund’s portfolio companies,” the trust said.
£18.5m had already been received prior to Easter, with the remaining balance expected throughout this quarter.
Founded in 2017, Literacy Capital focuses on growing private businesses while donating 0.9 per cent of its net asset value annually to charities focused on improving literacy in UK children.
Over £8.5m has been donated or reserved for donation to charities since the trust’s creation.
The trust’s stock price has risen 20 per cent in the last year, though it is flat since the start of 2024.
Its largest holding, at over a third of the portfolio, is healthcare company RCI Group, followed by tech consultancy Grayce, at 16 per cent of the portfolio.
Last week, the trust completed a minority investment into Live Business Group, an entertainment supplier based in West London.