Duke Capital (DUKE) Company presentation summary

Business model and product features

• Hybrid capital structure blends private credit and private equity, offering flexible funding while allowing business owners to retain control.

• Provides senior secured instruments with a 12% fixed rate yield, 30-year amortization, and principal paid throughout the term.

• Offers minority equity stakes at minimal cost and variable preference shares with annual yield adjustments based on partner revenue.

• Exit premiums of 15–30% are due upon refinancing prior to maturity, with business owners controlling exit timing.

Investment strategy and target market

• Targets companies with EBITDA of £2–8 million, investment size of £5–30 million, and low maintenance capex.

• Focuses on long-standing, private, owner-operated businesses with organic growth and dominant local market positions.

• Sectors include manufacturing, services, healthcare, and IT, primarily in the UK, Ireland, US, and Canada.

• Serves the lower mid-market, where companies have less access to institutional capital and value retaining control.

Market trends and positioning

• Private credit and direct lending are rapidly growing, with direct lending expected to reach $1.15tn by 2027.

• Direct lending is favored for its flexibility, certainty of execution, and as an alternative to traditional bank financing.

• Duke’s entry point is the lower middle market, exiting as companies grow into the middle market with more capital options.