M Power Capital Ltd. (MPC), the Colombo-based corporate finance advisory and private equity group, is celebrating its first anniversary. Located at Horton Place, M Power Capital was established by a group of experienced industry experts with operational specialisation in diverse fields. The team’s primary areas of specialisation include Banking and Investment Banking, Risk Management, Property Development, Civil Engineering and Construction, Telecommunications, Apparel Manufacturing, Gem and Lapidary Trade, Manufacturing and Retail Merchandising.
The company’s client portfolio ranges from Large and Medium sized corporates (including financial institutions and multinationals) to SMEs and HNW Investors. M Power’s key strengths are preparing client companies for disposal and then executing the transaction, advising buy-side investors (corporate and individual) on a potential acquisition until execution, corporate restructuring, project finance and arranging funding. MPC is also geared to manage IPOs and Private Placements.
Speaking on the creation of MPC, Chairman Anil Cooray stated, “Financial markets in Sri Lanka have experienced unprecedented change over the past few years, particularly after the ending of the long civil war in 2009. This has created a number of new challenges for corporates across different industries.” He added that recent developments in capital markets, volatility in equity markets and the government’s development initiatives have created new avenues for foreign investment and a renewed focus on capital market activity, changing the financial landscape for business.
Cooray further stated that, “With access to experienced and qualified foreign professional partners, our team of investment bankers are fully geared to simplify what would normally appear to be a very complex or time-consuming transaction. We have the connections in the local market to get over various challenges and one overriding quality of our work is being completely open and transparent with our clients. In addition to this, we recognise that this is a small market and we really have to ensure strict confidentiality at all times, balancing this with a robust compliance structure.”
Recalling the first year in operation, which Cooray termed an eventful year for the company, he said, “Using our broad experience across many industries, we were able to lay a solid foundation for future growth while also being actively involved in a few significant deals.” One of the key highlights was when Sarasavi Exports Ltd., a supplier to major high street retailers in the United Kingdom, approached MPC for financial and transactional advice on the acquisition of Isabella Ltd., a subsidiary of the DB Apparel Group, the market leader in branded intimate apparel and hosiery in Europe.
“The Sarasavi-Isabella deal was indeed a good indicator of how much confidence clients were ready to place in us, taking into consideration our team’s collective experience,” he said. MPC managed the end to end transaction process including conducting the negotiations with Sun Capital Partners, one of the largest private equity firms in Europe and the parent company of the DB Apparel Group. This also allowed Sun Capital Partners to dispose of their stake in DB Apparel to Hanes Brands, which is a hosiery giant incorporated in the USA. MPC continues to provide finance advisory services, post-acquisition, to Isabella Ltd.
“The future looks bright indeed, as the policies of the new government gives direction and strongly supports economic stability,” stated Cooray, adding, “MPC looks forward to working with companies in Sri Lanka and Asia, focussing on creating optimum capital structures and ensuring sustainable revenue streams – always with a long term relationship in mind.”
Director / Head of Corporate Finance