In 2011, Downing-managed VCTs invested in Lincoln-based late night leisure group Redmed Ltd, to fund the conversion of an empty building into a multi-room nightclub called Home. In May 2013, we completed a follow-on investment to support the acquisition of a second site, which was refurbished and operated as a bar and restaurant called Craft.
We were able to successfully exit the business in late 2016 following a bank refinancing of the nightclub, the simultaneous lease of the bar to restaurant operator Cote and the sale of the freehold to a property investor. This exit achieved a 13.5% IRR and delivered a 1.5x money return to investors*.
*Please note past performance is not a reliable indicator of future performance.