The Birmingham office of private equity firm Key Capital Partners has provided expansion financing to contemporary furniture and home accessories retailer Dwell.
Key Capital Partners (KCP) provided a £5 million equity investment for a minority stake in the company.
The consumer team at Clearwater Corporate Finance advised Dwell while the corporate team at Cobbetts advised KCP.
The investment from KCP will support the significant expansion of Dwell’s store estate as the company plans to launch 33 new high street outlets over the next four years – taking its total number of UK stores to 52 by 2014.
The KCP team comprised partners Owen Trotter and Andy Gregory.
Birmingham-based Trotter, who joins the board of Dwell as non-executive director, said: “The challenges facing UK retail over the last two years have been well documented, but Dwell has emerged from the turbulence in a far stronger position due to its first class management team and proven product offering.
“The business is performing strongly and we look forward to working with Aamir to expand the business significantly over the coming years, in line with its ambitions.”
Aamir Ahmad, founder and managing director of Dwell, said: “This capital injection from KCP represents the next milestone in Dwell’s development, having strengthened the management team last year in anticipation of both this investment and our aggressive four-year growth strategy.
“KCP will prove to be a key strategic partner as we look to boost brand awareness and expand the business, beginning with five new stores in the UK in 2011.
“The timing is perfect for expansion, both in terms of the life cycle of the business and conditions in the commercial property sector, where pricing is currently extremely competitive.”
Dwell creates and retails furnishings that combine aspirational design with affordable pricing, and has carved a niche targeting affluent young professionals.
Originally founded as a mail-order furniture business in 2003 by entrepreneur Aamir Ahmad, the company has grown from a single store in Balham, London, into one of the UK’s most fashionable multi-channel furniture retailers.
Dwell was advised on the transaction by the consumer team at Clearwater Corporate Finance, which comprised partner Marc Gillespie, director Gareth Iley, assistant director Richard Shaw, and industry adviser Jackie Naghten.
Mr Gillespie said: “Dwell is a rarity in its field, in that it is a true multi-channel retailer that performs equally strongly across its high street, online and catalogue channels.”
The corporate team at Cobbetts, comprising partners Adrian Cutler and Sean Fitzgerald and director Victoria Zivkovic, provided legal advice to KCP.
Partner Graham Elsworth and assistant director Louise Chubb at the Birmingham office of BDO provided KCP with financial due diligence.
Javelin’s Richard Wolff and Michael Fine provided commercial due diligence, while Paul Quinn of the Quinn Partnership provided management due diligence.
Insurance due diligence from Heath Lambert was provided by practice leader, Victoria Railton.
Partner Tim Hewens and solicitor Alistair Francis at Hammonds provided legal advice to Dwell, while Miriam Lampert provided employment law advice.