Extracted from the latest report (https://www.merian.com/wp-content/uploads/2020/01/merian-chrysalis-investment-company-fully-signed.pdf)
Growth Street Holdings Limited
Growth Street has developed an innovative peer-to-peer ("P2P") product specifically targeted at UK SMEs. The firm's proprietary technology platform integrates with a number of data sources to provide unmatched speed, flexibility and credit monitoring for SMEs. Growth Street reconciles accounting, bank and credit data on a daily basis, which enables it to streamline the credit decision process and provide ongoing credit monitoring and credit line adjustment. Its flagship business finance facility, GrowthLine, is a highly flexible revolving line of credit designed to replace and extend bank overdrafts and invoice financing. Growth Street has facilitated more than GBP80m of borrowing since launching in 2014.
On 11 June 2019, a further investment was made in Growth Street Holdings Limited with the purchase of GBP7.5m of convertible loan notes which can be converted into Preference Shares at a later date, conditional upon Financial Conduct Authority ("FCA") approval.
Post period end, two loans that Growth Street had made fell into default. Given the size of these loans, we have taken a prudent view of valuation while we work with other investors and management to implement a revised business plan.
In addition, post period end, the GBP7.5m convertible loan note was converted into Preference Shares on 17 January 2020.