08 Jul 2016
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- Post Deal Mkt Cap: N/A
Zeus Capital advises NorthEdge on multi-million pound investment in Neighbourhood and Victor’s
Zeus Capital acted as Financial Adviser to NorthEdge Capital and NewCo in the multimillion pound development capital investment in Neighbourhood and Victor’s Restaurants. The multi-million pound funding round will accelerate growth through new sites and investment in central operations. The deal value has not been disclosed.
The transaction is representative of Zeus Capital’s ability to raise capital across public and private markets for high growth companies. Zeus Capital provided support to NorthEdge and Newco by helping management of Neighbourhood and Victors write a comprehensive business plan and providing lead advisory services to all advisers on the transaction.
Neighbourhood, which was founded by entrepreneur James Hitchen and his brother Guy, currently operates the all-day eatery and late bar in the vibrant Spinningfields area of Manchester, and has recently undergone a £1m refurbishment. The East Coast inspired Victor’s, based in Hale, provides a high quality destination casual dining concept in suburban locations. Both brands have developed strong followings in the region due to their unique atmosphere and innovative menus, based around premium steaks, fresh seafood and sushi.
The investment will allow Hitchen and his team to fulfil their ambitious growth strategy, which involves rolling out the two concepts in city centres and suburban locations across the UK. The business is expected to record turnover of £8m this year and has recently started work on a second Neighbourhood site in Liverpool which will take staff numbers to 200.
James Hitchen, Chief Executive, East Coasts Concepts Limited and Victors Restaurants Limited
We have built a long-standing relationship with Zeus Capital over the years, so we knew that the team was the best choice to help us find the right strategic backer for the business. With our ambition to roll out our innovative dining concept into other Northern cities, NorthEdge can provide expert knowledge, with a proven track record of success. Zeus Capital was also invaluable when it came to formulating our business plan, meaning that with NorthEdge’s ongoing support, we are in fantastic shape to build our brands into a real force in the casual dining market.
Richard Darlington, Director, Private Equity Advisory, Zeus Capital
We are delighted to have advised the NorthEdge team on its investment in Neighbourhood and Victor’s. In recent years, private equity investment from both the UK and overseas has had an enormous impact on the strength of the UK’s casual dining sector, paving the way for new and innovative concepts in the industry. Neighbourhood and Victor’s have proven to be in high demand in the North West, and I am certain that with the support of his new backers, James will be able to realise his plans to roll out across the UK.
Phil Frame, Investment Director, NorthEdge Capital
As our lead adviser, Zeus Capital played an integral role in ensuring that this transaction was as smooth as possible. The fact that the entire process, from introduction to completion, was coordinated by Zeus Capital in under 12 weeks, is testament to the efficiency of the team and the strength of the relationships they have.