A Cornwall-based mountain bike supplier is set to expand after receiving an £8.5m injection via a London-based investment company.
Silverfish UK Ltd, which is based in Saltash, supplies premium mountain bike and crossover brands to UK retailers.
The £8.5m investment from clients of Connection Capital, a specialist private client alternative investment business, will fund growth by expanding the company’s brand portfolio, product range and European sales, as the market grows with more people buying mountain bikes, demand for e-bikes expanding and consumers upgrading to premium cycles.
Connection Capital’s investment and expertise will enable Silverfish to unlock further growth for its existing brand partners, provide investment into customer support infrastructure for its retail customers, and help the company expand on the Continent.
As part of the growth strategy, Silverfish will also be looking to attract new, “highly desirable”, premium brands to its platform in the UK and Europe.
Established in 1999, with a select handful of progressive Canadian bike brands, Silverfish has focussed on premium mountain bike and crossover brands.
Currently operating across the UK, Ireland and a number of European countries, the brand portfolio includes names such as Yeti Cycles, FOX, Michelin, Race Face, SDG, Knog, Marzocchi, CushCore, Peaty’s, Ride Concepts, 100%, Easton, Birzman and Skratch Labs.
Darren Mabbott, founder of Silverfish, said: “This investment marks an exciting new chapter for the business and one which I think will open up numerous opportunities for our brand partners, retail customers and the talented team at Silverfish.”
Under the deal, Mr Mabbott will remain actively involved with the firm and will be supported by newly appointed managing director Matthew Osborne, who joined the business in 2015 as general manager, and by Michael Coupland, who will act as investment director on behalf of Connection Capital.
Mr Osborne said: “We see huge opportunity in expanding our existing brand portfolio with ambitious and complementary brand partners. Silverfish’s success to date has been built on partnering with established international brands, as well as working with exciting new brands to help them realise their market potential. With the support of Connection Capital, we are well placed to add to our range of products and territories.”
Mr Coupland said: “The mountain bike market has experienced significant growth in recent years, especially since the advent of Covid-19. Silverfish operates in a very attractive niche of the mountain bike market, its focus on the highly desirable premium brands means it is well positioned to grow over the long term, as consumers move up the value chain.”
Connection Capital is a Financial Conduct Authority authorised and regulated specialist syndicator of investment funds from private professional investors into direct private equity, private debt and commercial property deals, as well as alternative asset funds. It currently has £370m of funds under management across a diverse portfolio.
Connection Capital provides a specialist managed service to help professional clients build up their own alternative asset portfolios. Private investors self-select which opportunities they want to take a stake in. Opportunities are identified and negotiated by Connection Capital, which also carries out all due diligence and manages the investment from completion through to exit, on its clients’ behalf.
For the Silverfish deal, Connection Capital was advised by Gateley, CIL Management Consultants, Quantuma Advisory Ltd,, Confidas People and Risk Capital Partners. ThinCats provided debt funding to support the transaction. Silverfish was advised by LAVA Advisory Partners and Foot Anstey.
