Belfast asset-based lending business Upstream has completed a management buyout (MBO) led by founder Judith Totten.

Founded in June 2011 as a boutique SME funding provider, Upstream has evolved to become a leading structured asset-based lender targeting small businesses and mid-sized corporations.

The business has scaled ten-fold post-Covid, and the MBO team said the deal would assure its rapid growth trajectory, with plans for acquisitions and product diversification in the UK and Ireland.

Pollen Street Capital has provided management with a new £150m (€180m) facility to accelerate the company's expansion.

“This significant new partnership with Pollen Street Capital will give us the bandwidth and fire power to support more ambitious entrepreneurs, with a much broader service offering," said Totten.

"This MBO brings the Upstream business back under the full control of the local team, positioning us for growth through acquisition and diversification into new markets and services across the working capital, structured ABL and receivables spectrum. 

"We remain sector agnostic but now have the capital for larger structured finance deals and a full ABL suite of facilities, securing our place as the ‘go to’ for growth funding."

Connor Marshall-Mckie, investment director at Pollen Street, said: "We are excited to work with Judith and the Upstream team on this new facility.

"Upstream have delivered impressive growth and strong performance in their structured ABL product, a perfect fit for our senior asset-backed credit strategy.

"We look forward to working with the team further scaling the business across the UK and Ireland."

Upstream plans to add to its team of receivables and structured asset-based lending specialists this year.

Bill Hichens, operations director of Upstream, said the timing of the announcement could not be better.

"The SME and mid-corporate funding landscape has changed dramatically, accelerated by global economic instability," he continued.

Businesses now require multi-layered funding approaches to maximise growth potential.”

Totten agreed that the MBO and funding injection could not have come at a better time considering economic headwinds and growing caution among traditional lenders.

"Supported by Pollen Street, we look forward to growing our footprint – and our team – across the UK and Ireland to help our clients achieve economic excellence. Our clear strategy now is to drive for scale," she added.

"Pollen Street Capital’s partnership ethos aligns with our goal to support ambitious and visionary business owners.”

Photo: (l-r) Lewis McCallan, ABL partner; Judith Totten, founder and CEO, and Bill Hichens, operations director, Upstream.