British Business Bank converts debt to equity, becoming shareholder in Quantum Group

British Business Bank converts debt to equity, becoming shareholder in Quantum Group

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The UK government British Business Bank has converted debt to equity following its investment into Quantum Group to become a minor shareholder in theGroup. The British Business Bank made its investment into the fintech and security incubator as part of the government’s Future Fund initiative.

First launched in 2020 in response to the impact of the Covid-19 pandemic, the Future Fund issued 1,190 companies with convertible loads worth a total of £1.14bn, with third-party investor required to match the government investment.

Now, following the conversion of these loans, Quantum Group is continuing to build its portfolio of fintech and security companies to profitability, with plans to move forward to an initial public offering (IPO) with no external debtor bank overdrafts. The Group projects that it will go to market in 2025/2026.

Peter Malmstrom, Quantum Group Co-Founder and Head of M&A, said: “This investment, followed by another £8m of capitalisation between Christmas and NewYear, significantly strengthened the Group’s balance sheet, meaning QuantumGroup can now move forward towards an IPO with no external debt or bank overdrafts as it scales to profitability.”

The Quantum Group of companies currently includes FCA-regulated businesses Volopa, the expense management and FX platform; Verve, the seamless cashback and rewards app solution; elite cyber security and crisis response firm Valkyrie; and luxury and fintech media agency, Vantage.

Ken Cooper, Managing Director, Venture Solutions, British Business Bank, said: “TheFuture Fund was created to ensure a flow of capital, at the height of the pandemic, to companies that would otherwise have been unable to access government support schemes, while ensuring long-term value for the UK taxpayer.The Future Fund is now entering the maturity phase, which signals three years since the first loans were executed. This is likely to increase the level of transactional activity rapidly over the coming months.”

Find out more about Quantum’s portfolio of companies and dedicated leadership team here

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