Niche recruiter pays back investors early

Leeds and London-based Directorbank has achieved its most spectacular year of growth since it was set up seven years ago. With profits up 80 per cent on 2003 and numbers of appointments up 33 per cent, the company has paid off its long term loans three years early.

Directorbank, the UKís leading recruiter of directors and non-executive directors for management buy-out/buy-in deals, is now signed up by 50 venture capital houses paying annual retainer fees to have constant access to a database of some 2,500 immediately available and vetted directors. The most recent to sign up is the giant American private equity fund, Warburg Pincus.

Private equity and venture capital backed companies employ 18% of Britainís private workforce with some 60 billion funds invested.

Gerard Downes of Springboard Plc, who have funded Directorbankís growth plans from 1999, said: ìDirectorbank is turning out to be one of our star investments. They have carved out a niche service that venture capitalists ñ including ourselves ñ absolutely love. They can respond at the speed we need when putting deals together and we often find directors from their database to help shape deals in the early days.î

In the financial year ended 30 June 2004, 750 investment executives had access to the Directorbank service and carried out more than 14,000 searches to find directors to assist with deals.

Sarah Grnewald, one of the northís top corporate financiers, joined the business two years ago and has spearheaded a new division providing non-executives for public companies. Companies who have filled positions using Directorbankís innovative approach include Centerparcs, Cattles, Marshalls, Genus and Homestyle.

Jonathan Hick, founder and chief executive, said: ìWe are now positioned as a major partner in the private equity market. Weíve turned the whole process of finding people for VC-backed deals on its head and weíre doing the same in the plc market.

ìWe can short-list non-executive director candidates within days ñ and plcs love the fact that we work on a contingent basis. Our service fits in with the Higgs Report and the need for plcs to be open, thorough and wide-ranging in recruiting non-executive directors.î

Directorbank now has a team of 14 people based in Leeds and London offices. It runs highly prestigious and well-attended events for deal-makers to meet potential directors in seven cities across the UK.