Connection Capital portfolio company Cargostore Worldwide has partnered with Virgin Money to secure £17 million of day one facilities, with up to £30 million available in the funding package to support growth initiatives over the next five years.
The funding package provides Cargostore with significant financial firepower as the business enters the next phase of its growth journey, supporting further investment in its fleet, international footprint and product offering.
Cargostore provides specialist container and modular equipment for hire or sale worldwide, serving customers operating in complex, project-led environments including offshore wind, energy, infrastructure, defence, mining and international aid.
With the support of this refinance, Cargostore is well positioned to push forward on several fronts including the continued expansion of Liftaloo, Cargostore’s pioneering offshore welfare solution, and further investment behind rising customer demand in key international markets.
Cargostore is entering the next five years with strong momentum across several of its core geographies. Europe is currently performing 35% ahead of budget year-to-date, powered by increased offshore wind activity in the North Sea. In Africa, the business continues to support blue-chip clients as they expand into frontier markets: a well-trodden strategy of turning new geographies into long-term revenue streams.
More broadly, the transaction reflects the role that private equity ownership can play in helping established, specialist SMEs invest for growth. Rather than being limited to the initial investment or eventual exit, active private equity backing can help management teams strengthen their platform, access flexible capital and pursue the opportunities created as their markets evolve.
Andrew Hart, CEO of Cargostore Worldwide, said:
“We are delighted to have partnered with Virgin Money, giving us a strong platform for the next five years of growth. It has been great working with Connection Capital and the wider team as we continue to develop Cargostore’s capability, invest in our fleet and support our customers in some of the world’s most demanding project environments.”
“The business has significant opportunities in front of it, from the expansion of Liftaloo and continued growth in offshore wind, to major projects in the Middle East and supporting our blue-chip clients as they move into frontier markets in Africa. We would also like to thank Virgin Money and our incumbent DunPort for their support throughout the process.”
Sam Kemp, CEO at Connection Capital, added:
“Cargostore is exactly the kind of specialist, asset-backed business that private equity can help to scale. Since our clients invested, the company has continued to strengthen its market position, expand internationally and develop new products that respond directly to customer need.”
“This refinancing marks an important step in the next phase of Cargostore’s journey. It provides the business with the facilities and flexibility to continue investing behind growth, while supporting Andrew and his team as they build on the strong momentum already evident across Europe, the Middle East and Africa.”
William Beveridge, Strategic Finance Director at Virgin Money, said: “Cargostore has built a strong reputation in its market and is continuing to grow at pace. Its plans to expand its fleet, strengthen its international footprint and respond to increasing demand across complex, project-led sectors made this a compelling transaction for our team. At Virgin Money, we work closely with investors, businesses, and their advisers to provide the specialist support and flexible funding needed at key moments in their development. We’re delighted to work with Connection Capital in supporting Andrew and the Cargostore team as they continue to build momentum and pursue the opportunities ahead.”
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