Prefequity
Prefequity is a UK-based private credit firm providing senior secured loans of £5-25m with equity warrants to lower mid-market SMEs with EBITDA of £2-10m, managed through £250m+ of fund capital anchored by the British Business Bank.
- Company typePrivate
- Founded2017
- HeadquartersLondon, United Kingdom
- Headcount1–10
- GTM typeB2B
- OfferingServices
What Prefequity does
Prefequity is a UK-based private credit investment firm, structured as a limited liability partnership (Prefequity LLP) and authorised and regulated by the Financial Conduct Authority. Founded in 2017 by Theo Dickens, Nick Petrusic, and Johnny Carew Pole, the firm provides flexible growth capital to UK lower mid-market SMEs with EBITDA between £2m and £10m, deploying senior secured loans of £5m to £25m per transaction through two fund vehicles: Fund I (£100m, 2017) and Fund II (Prefequity Credit Opportunities II LP, £150m target, first close May 2024), with an additional £15m separately managed account backed by the British Business Bank. The product set covers MBOs, growth capital, refinancings, acquisition financing, and shareholder realignments, complemented by equity warrants giving the firm upside participation.
The firm's revenue model combines contractual interest and fees on senior secured loans (approximately two-thirds of total returns) with equity upside from warrants (approximately one-third), with a target IRR of 18-20% on Fund I deals at an average opening leverage of 2.5x. Origination is direct and relationship-driven, relying on a network of regional corporate finance firms outside the M25 (7 of 8 Fund I investments were outside London) and board-level involvement in every portfolio company; the firm takes a board seat on all investments and provides hands-on strategic support throughout a typical 5+ year hold. Notable portfolio outcomes include EBITDA more than doubling at TLC Marketing and CaviTech, ~50% sales growth at WH Good, and multiple refinancing-based exits, alongside ongoing buy-and-build activity at Ilektra (three bolt-on acquisitions in 14 months). The firm is a UN PRI signatory and is led by six professionals with backgrounds at Morgan Stanley, Merrill Lynch, NatWest, GSC, CapitalSource, Rothschild, KPMG, and Duke Street.
Prefequity firmographics
Firmographics- Name
- Prefequity
- Legal name
- Prefequity LLP
- Website
- https://prefequity.com
- Company type
- Private
- Founded year
- 2017
- Operating status
- Operating
- Headcount range
- 1–10 employees
- Short description
- Prefequity is a UK-based private credit firm providing senior secured loans of £5-25m with equity warrants to lower mid-market SMEs with EBITDA of £2-10m, managed through £250m+ of fund capital anchored by the British Business Bank.
- Ownership category
- akta.pro rank
Prefequity industry classification
Industry- Product category
- Private Credit / Direct Lending
- NAICS
- International, Secondary Market, and All Other Nondepository Credit Intermediation (522299), Other Investment Pools and Funds (5259), All Other Financial Investment Activities (52399)
- SIC
- Investors, Nec (6799)
- akta.pro primary industry
- SME Term Loans & Growth Capital (FSAKAGAB)
- akta.pro secondary industries
- Lower Mid-Market Buyout (FSANABAC), Venture Growth / Recurring Revenue Credit Funds (FSANAIAG), Small Business Debt Consolidation & Refinance (Owner/SME) (FSAKAIAI)
Keywords
Where Prefequity is headquartered
LocationHeadquarters
- HQ city
- London
- HQ country
- United Kingdom
- HQ region
- Europe
Offices2 records
Markets served
Prefequity business model
Business model- GTM type
- B2B
- Offering type
- Services
- Cost components
- Personnel, Operations, Marketing or Sales, Technology or R&D, Infrastructure
Revenue model
- Interest income from senior secured loans: Prefequity provides senior secured debt to investee companies, generating regular interest payments. Approximately two-thirds of returns are derived from contractual interest and fees, providing downside protection.
- Equity warrant participation: Prefequity takes equity warrants giving the right to buy equity at a fixed strike price, typically exercised after loan repayment (usually five years). This equity upside represents approximately one-third of total returns and acts as an inflation hedge.
Go-to-market motion2 records
Distribution channels1 record
Marketing channels5 records
Prefequity product offering
Product offeringCore offering
Prefequity provides flexible growth capital to UK lower mid-market SMEs through senior secured loans paired with equity warrant participation. Investments range from £5m to £25m per transaction in companies with EBITDA between £2m and £10m, supporting MBOs, growth capital, refinancings, acquisitions, and shareholder realignments. The firm takes a board seat on every investment and offers five-year-plus horizons, delivering owner-managers a non-controlling alternative to traditional private equity.
Product overview
Prefequity is a UK-based private capital group offering a single unified investment product: flexible structured capital solutions combining senior secured debt with equity participation for lower mid-market companies. The core offering provides investments of £5 million to £25 million in UK businesses with EBITDA of £2 million to £10 million, structured as senior secured loans with minority equity positions. The firm operates through two fund vehicles (Fund I at £100 million and Fund II targeting £150 million), deploying capital across MBOs, growth financing, acquisition financing, refinancings, and shareholder realignments. The investment approach emphasizes downside protection through senior secured positions while participating in upside through equity warrants, with typical investment horizons of five years or more.
Differentiator
Problem solved
Functional benefit
Products and services
- Prefequity Credit Opportunities Fund I First-fund vehicle of £100m deployed across approximately 8 UK lower mid-market investments. Provides senior secured loans with equity warrant participation targeting EBITDA £2m–£10m SMEs.
- Prefequity Credit Opportunities Fund II Second fund vehicle targeting £150m of capital for investments of £5m–£25m in UK lower mid-market companies (EBITDA £2m–£10m), structured as senior secured loans with equity participation.
- Management Buyout (MBO) Financing Structured capital solutions to fund management buyouts, allowing owner-managers to retain control of their businesses while securing the necessary investment capital for transactions.
- Acquisition Financing Capital to fund add-on acquisitions for portfolio companies, supporting inorganic growth strategies through bolt-on transactions alongside the Prefequity investment.
- Refinancing Solutions Balance sheet refinancing services to replace existing debt structures with more flexible senior secured arrangements, often used as a stepping stone to equity-warrant participation.
- Shareholder Realignment Financing Capital solutions to facilitate ownership restructuring between existing shareholders, including founder exits and management buyouts while maintaining business continuity.
Quantifiable outcome
- Target IRR of 18-20% in Fund I with average opening leverage of 2.5x
- +3 more outcomes
Companies that use Prefequity
Customer profileNamed customers10 records
Segments1 record
Ideal customer profiles1 record
Prefequity technology and API
TechnologyTechnology focussed No
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
Prefequity partnerships and signals
Strategic signalPartnerships
One partnership is on record.
- UN Principles for Responsible Investment (UN PRI)corePrefequity is a signatory to the UN PRI, reinforcing its commitment to integrating ESG considerations into investment decision-making and ownership practices. The firm is guided by the six PRI principles covering ESG integration, active ownership, disclosure, and reporting.
Scale indicators6 records
Recent moves8 records
Expansion highlights6 records
Prefequity competitors and assessment
Company assessmentDirect peers
- BOOST&Co: UK private credit firm providing growth capital to ambitious SMEs through structured debt and equity instruments. Directly comparable to Prefequity in deal size range, customer profile (UK owner-managers), and senior secured debt with equity participation.
- Beechbrook Capital: UK lower mid-market private debt and equity investor serving SMEs with EBITDA typically £2-15m. Closely comparable to Prefequity in target segment, capital structure (debt with equity upside), and geographic focus on UK regional businesses outside London.
- Praetura Capital: Manchester-based regional capital provider focused on UK SMEs in the North of England. Directly comparable in regional focus, deal size, and provision of flexible structured capital to ambitious owner-managed businesses.
- Maven Capital Partners: UK regional SME investor providing debt and equity capital to lower mid-market businesses with EBITDA of £1-10m. Comparable in target customer profile, regional UK focus, and flexible growth capital approach.
- Mobeus Equity Partners: UK lower mid-market investor providing growth capital and MBOs to SMEs with EBITDA typically £2-10m. Comparable in deal size, customer segment, and use of structured capital solutions for UK owner-managed businesses.
- YFM Equity Partners: UK SME investor with regional offices providing equity and debt capital to businesses with EBITDA of £1-10m. Closely comparable in target segment, UK regional focus, and structured capital solutions.
- Connection Capital: UK private capital firm providing growth and acquisition capital to ambitious SMEs and owner-managed businesses. Comparable in deal size range, target customer profile, and structured debt-plus-equity approach.
Broad incumbents
- Pollen Street Capital: London-based specialist private equity and credit manager focused on financial services and SMEs. Broader incumbent offering overlapping capabilities but at greater scale and across wider segments than Prefequity's niche UK lower mid-market.
- Permira Debt Managers: Major European private credit arm of Permira providing direct lending to mid-market companies. Operates in adjacent space at larger scale (£100m+ deals), serving as a broad incumbent with overlapping product capabilities.
Emerging players
- Triple Point Investment Management: UK investment manager offering private credit, venture, and EIS solutions to growth SMEs. Comparable in providing capital to UK SMEs but with broader product mix and smaller AUM in private credit specifically.
Market position
Strengths5 records
Weaknesses5 records
Competitive moat4 records
Key risks6 records
Key highlights7 records
Customer concentration
Prefequity social profiles
Digital presencePrefequity compliance and trust
Trust signalCompliance2 records
Prefequity financial estimates
Financial estimateRevenue estimate
Valuation estimate
Prefequity leadership team
Management profileNumber of profiles
Profiles6 records
Prefequity funding detail
Funding detailFunding overview
Funding rounds
Investors
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
Prefequity M&A and investment
M&A and investmentM&A
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about Prefequity
What does Prefequity do?
Prefequity provides flexible growth capital to UK lower mid-market SMEs through senior secured loans paired with equity warrant participation. Investments range from £5m to £25m per transaction in companies with EBITDA between £2m and £10m, supporting MBOs, growth capital, refinancings, acquisitions, and shareholder realignments. The firm takes a board seat on every investment and offers five-year-plus horizons, delivering owner-managers a non-controlling alternative to traditional private equity.
Is Prefequity a public or private company?
Prefequity is a private company. It is classified as founder individual operated bootstrapped and is currently operating.
When was Prefequity founded?
Prefequity was founded in 2017. It employs 1 to 10 people.
Where is Prefequity based?
Prefequity is headquartered in London, United Kingdom, in the Europe region.
How does Prefequity make money?
Two revenue lines are on record. Interest income from senior secured loans are the primary driver. The others are equity warrant participation.
Who are Prefequity's main competitors?
Direct peers on record are BOOST&Co, Beechbrook Capital, Praetura Capital, Maven Capital Partners, Mobeus Equity Partners, YFM Equity Partners and Connection Capital. Broad incumbents are Pollen Street Capital and Permira Debt Managers. Triple Point Investment Management is listed as an emerging player.
Does Prefequity have an API?
No public API is recorded for Prefequity.
What industry is Prefequity in?
Prefequity's product category is Private Credit / Direct Lending. Its primary akta.pro industry code is FSAKAGAB, SME Term Loans & Growth Capital, with a secondary code of FSANABAC, Lower Mid-Market Buyout. Its NAICS code is 522299 and its SIC code is 6799.