Literacy Capital is set to book a profit of £9.4mln gain on the sale of its stake in Kernel Global, a high-quality recruitment group.
Kernel was the fourth largest investment in Literacy Capital’s portfolio, with a sale value of £28.6mln nearly a 49% premium to its carrying value.
Literacy added that £19mln of its sale receipts are payable in cash, with the rest remaining in the business, making the return on its investment 9.8 times the cost, before any future uplifts.
The cash proceeds will repay the amounts drawn under its Revolving Credit Facility, before recycling these proceeds into new investments.
Richard Pindar, investment manager and director of Literacy Capital, added: "This transaction sees Literacy realising the majority of its investment in Kernel, which delivers a significant return for the fund and its shareholders, whilst also providing a substantial amount of capital to fund new investment opportunities.
“The business has grown from approximately 50 employees to almost 300 in a little over four and a half years and now operates in five countries across three continents.
"We are happy to have been able to support the wishes of Kernel's management team to sell the business and we are pleased to retain a small stake, allowing Literacy to continue benefiting from growth of the business in the future.”