Creation of a pub investment fund

Aim
  • To create an investment fund to acquire and turn around under-performing freehold pubs

Scope
  • Cairneagle incorporated Foundation Inns in 2007 as an Enterprise Investment Scheme (which allows individual investors to participate in a highly tax efficient manner)
  • We recruited a highly experienced Board and management team with 20 years experience at Spirit Group
  • Cairneagle developed the business strategy and wrote the Investment Memorandum for the fundraising round

Outcome
  • £6m was raised into a tax-efficient vehicle
  • Six pubs were acquired and refurbished under the new management
  • Cost and revenue synergies have been achieved through increased scale of operations
  • A trade sale is anticipated within 4 years of the initial investment