HNH Director Neal Allen

Despite challenging economic conditions, boutique corporate finance specialists HNH has helped Quorum Cyber Security Limited secure growth capital investment to scale its business internationally.

Led by HNH Director, Neal Allen, the Scottish arm of the Belfast-based multi-disciplinary financial advisory firm secured the £2.7m investment from Maven Capital Partners through its Venture Capital Trusts (VCTs), alongside the Scottish Investment Bank, which will allow the Edinburgh-headquartered cybersecurity and data confidence services company to scale up.

In a sign of the resilience of the Scottish tech sector and the appetite for investment in ambitious Scottish businesses, the growth capital deal was instigated by Quorum Cyber’s Managing Director, Federico Charosky, who has a 40% stake in the business.

With a turnover of £2.7m and a team of 25 operating from Edinburgh, Quorum Cyber provides a professional and managed security services for UK and international clients including a fully-managed detect and response capability via the company’s Microsoft Azure Sentinel Security Operations Centre (SOC).

Federico will use the growth capital to further scale the business, investing in sales and marketing resource, as well as product innovation to ensure clients can confidentially operate within an increasingly hostile cybersecurity environment.

Allen and the HNH team, which specialises in advising SMEs and entrepreneurs on mergers and acquisitions (M&A) and growth capital activity, spent several months working with Quorum Cyber to secure the most appropriate investment solution. Having identified several potential investors among its extensive network, HNH secured the investment from Maven Capital, one of the UK’s most active private equity houses.

Allen, Director – Deal Advisory at HNH, said: “While COVID-19 and Brexit have created a challenging financial climate, this growth capital investment demonstrates that there is an appetite for growth and investment in Scottish business.

"It was very encouraging that there was a lot of interest among Scottish-based private equity/venture capital funds and we’re delighted to have facilitated this for Quorum Cyber. The team at Maven Capital Partners, led by David Millroy, were very receptive from the start and we know that Maven is the right home for this business as it continues to grow its client base around the world.”

Federico Charosky said: “Working with HNH and Maven to create the deal has been a fantastic experience. This deal will enable Quorum Cyber to continue growing in a sustainable way, ensuring we continue to exceed customer expectations while protecting the amazing culture we’ve created.”

David Millroy, a Partner at Maven Capital Partners, said: “We are delighted to be leading the investment in Quorum Cyber and look forward to being part of its growth in the years to come. The senior team have already created a strong business and there is significant opportunity to scale operations globally, with further expansion already underway in the Middle East, Australia, South Korea, and North America.”

The Edinburgh office of HNH opened in April 2019. In March this year, HNH’s Edinburgh team secured a £30m asset-based lending package for The GlenAllachie Distillers Co from Clydesdale Bank. Other clients have been drawn from food and drink, manufacturing, building products, business services and transport sectors.

Advisers to Quorum Cyber Security:

  • Corporate Finance: HNH Group
  • Legal: MBM Commercial
  • Tax: Chiene + Tait LLP
Kate Buckle
Article by Kate Buckle
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