International law firm CMS has acted for market leading competitive socialising business Social Entertainment Ventures Ltd (“SEV”) on a second fundraising in in six months.
The fundraising involved negotiating a US$16m round of US$ denominated subordinated convertible loan notes subscribed by investors based in the US, BVI and UK. This second tranche took the value of the combined raise from the same investor consortium to $20m.
SEV is a market leader in the competitive socialising sector founded by Adam Breeden. SEV’s stable of concepts include BOUNCE, ACEBOUNCE and HIJINGO and they have recently spun off PUTTSHACK having co founded the tech enabled mini golf brand that has recently opened its third site at Bank. SEV also owns the US and Canadian rights for FLIGHT CLUB.
SEV will use the funds to retire some holistic debt and assist on the roll out of FLIGHT CLUB in the US as well as to develop their new concept HIJINGO, a high tech bingo concept.
Speaking about the deal, Toby Harris, CEO of SEV stated, “As a fast growing business rolling out concepts simultaneously in the UK and the US, SEV has a complex capital structure and needed a legal team that understands the leisure sector and is confident of raising multi-denominated capital under pressure. For me David and his team at CMS are the market leaders in our space and once again they were excellent.”
Corporate partner and Head of the CMS leisure practice David Roberts stated, “Having worked with Toby before, it was great to be asked to help him and Adam grow one of the most exciting competitive socialising businesses operating successfully in both the UK and US. The fact that SEV raised such a significant amount of capital a month out from the December election and prior to Brexit when the rest of the market is stagnant demonstrates the quality of the business.”
The CMS leisure practice acts for market leaders in the leisure sector across a spectrum of sub-sectors including premium, casual dining and early stage restaurants, bars, gyms and fitness, resorts and hotels, golf clubs, theatres and travel businesses. Recent transactions include the purchase by Bridges of Energie Fitness, the investment by IMBIBA Fund into Vagabond wines, the purchase of Hibbs FC, the creation of Pavlova’s for Sir Cameron McIntosh’s theatre group as well as a variety of matters for restaurant fund White Rabbit Fund.
The CMS team was led by corporate partner David Roberts with assistance from corporate senior associate Theo Godfrey, corporate associate Anoushka Gangji and trainee James Highfield. The finance team was headed by Charles Kerrigan with day management from up-and-coming associate Katharine Lammiman, assisted by Sara Danso.