Pancredit, the lending solutions business, is a good example of our approach, and was the first investment we made on forming Shackleton in 2006. It had been funded by equity and loan in a succession of investment rounds from various VCs. Shackleton acquired these interests, and we immediately restructured to better reward and align management, by reducing the nominal value of the loan and granting new options.
We supported the team through very challenging times for lenders, as the ramifications of the Financial Crisis struck the company’s market particularly hard, with Deborah Hudson serving as Non-Exec Chairman. We helped the company rebuild and Pancredit’s Pre-Tax Profits rose 7-fold over the 8-year investment life, allowing us to record a 35% cash IRR on our investment. Moreover, we helped members of the management team to spin-out a division of the company, trading as Panintelligence, which remains an important, and fast-growing, member of our family of investees.