UK top 25 law firm DAC Beachcroft has sealed a £65m financing deal with Lloyds and HSBC to help give it the “firepower” to push through the covid-downturn.
The London-headquartered law firm, which has 19 offices and more than 2,600 people around the world, said it boosted its finance facility to ensure its plans for growth will not be disrupted by the covid-19 pandemic.
Finance director David Gillard said the firm was discussing the refinancing with its banks before the pandemic struck, but agreed a larger facility “To give us a bit more firepower in view of the fact we don’t know how the world is going to turn out and because we have a strategy we want to pursue through the cycle,” he said.
DAC Beachcroft managing partner David Pollit said: “DAC Beachcroft is a financially robust business with an international turnover of £258m and this latest finance facility from HSBC UK and Lloyds Bank has given us additional headroom to progress some of our strategic business objectives.
“Our balance sheet remains strong and this improved debt capacity – even if unused – will give our clients and colleagues further confidence in our business.”
The firm said it planned to invest in expansion in Europe and Asia in the next six-to-nine months and to upgrade its technology and infrastructure.
HSBC said it provided further covid-19 related funding (primarily increased working capital facilities) to 22 of the top 50 UK law firms (and a number of the top 200 UK law firms and international firms with a UK presence) in recent months.
The bank said it is in ongoing discussions with a number of law firms to provide further banking products and services over the coming months.
Chloe Clift, head of professional services at HSBC UK, said: “HSBC UK has enjoyed a long-standing relationship with DAC Beachcroft and has seen the firm go from strength to strength, with successive years of across-the-board financial improvement and successful expansion both abroad and in the UK.
“We were delighted to support this innovative and profitable business, as it pursues its ambitious growth plans. This transaction continues to demonstrate our commitment to the professional services sector in the UK and our unique ability to support our customers internationally.”
Stuart Leslie, Lloyds Bank relationship director, said: “Like other prudent professional services firms, the management team at DAC Beachcroft has recognised that now is the right time to further strengthen its balance sheet in the face of the current and future challenges.
“The firm is among those flying the flag for UK professional services in overseas markets and this funding package will also ensure it has the support to capitalise on new opportunities as and when they arise.”