DUKE Duke Capital Limited

7 March 2024

Duke Capital Limited

("Duke Capital", "Duke" or the "Company")

Successful Exit of Investment in Fabrikat

Duke Capital Limited (AIM: DUKE), a leading provider of hybrid capital solutions for SME business owners in Europe and North America, is pleased to announce the successful exit of its investment in Meteor HoldCo Limited, the 100% owner of Fabrikat (Nottingham) Ltd ("Fabrikat"), a UK manufacturer of street lighting columns and guard rails.

Overview

·  This exit delivers an IRR of 36% for Duke, with further potential gains available from future performance-related deferred consideration

·   The exit comes three years after Duke's financing solution enabled Fabrikat's established management team to become majority equity owners

·    Due to the impressive operating performance of the business since the MBO, Duke has realised a significant equity gain in addition to the return on its core private credit investment

·     Fabrikat is being acquired by Metalogalva - Irmãos Silvas, SA, a Portuguese company in the area of engineering and steel protection with more than 50 years of history and operations spanning across 14 countries and four continents

·     Duke had invested a total of £6.2 million in Fabrikat to date

·   This represents the eighth exit since inception, with the proceeds providing Duke with additional liquidity for new and follow-on investment opportunities

Neil Johnson, CEO of Duke Capital, said:

"Fabrikat is a real success story for Duke and a great case study for why Duke's capital is a perfect fit for individuals seeking to execute an MBO. Our capital allowed long-standing employees of a strong business to step up into large equity ownership positions and in that role, they continued to prove themselves as great stewards of the business, creating value for all stakeholders. In turn, we are pleased to build on our already robust track record of achieving above-average returns on exits."

Paul Allen, CFO of Fabrikat, said:

"We would like to thank Duke Capital for buying into our vision in a way which motivated us to drive significant growth in the company. Duke's capital enabled us to execute the MBO while the team supported us by becoming partners in our growth and success.

"Initially we went through a very competitive process but only Duke Capital's offer allowed us to keep 70% of the business that we had spent years crafting as the senior management team. And to top it off, we were able to keep control of the timing of the sale and the counterparty to whom we entrust the future of Fabrikat and our employees."

Duke Capital Portfolio

A full list of Duke's current Partners is included for reference on the Partners page of the Company's website: www.dukecapital.com/partners. A case study relating to our partnership with Fabrikat can be found here, providing additional insight on how we supported their growth strategy.

***ENDS***

For further information, please visit www.dukecapital.com or contact:

About Duke Capital

Duke is a leading provider of hybrid capital solutions for SME business owners in Europe and North America, combining the best features of both equity and debt.

Since 2017, Duke has provided unique long-term financing which eliminates re-financing risk and necessity for a short-term exit by providing a unique 'corporate mortgage' while also aligning its returns to grow with the success of the business.

Duke is focused on generating attractive risk-adjusted returns for shareholders and has a track record of achieving this across market cycles. Its three investment pillars are capital preservation, attractive dividend yield, and to provide upside upon exits. Duke is listed on the AIM market under the ticker DUKE and is headquartered in Guernsey.