Wallace LLP Advises New Model Venture Capital on Pioneering £15.85 Million GVPL Financing
Wallace LLP Advises New Model Venture Capital on Pioneering £15.85 Million GVPL Financing
The Wallace corporate team has successfully advised New Model Venture Capital on structuring and executing the world's first Guaranteed Venture Portfolio Loan (GVPL) - a groundbreaking £15.85 million financing arrangement with institutional funders.
This innovative transaction represents a significant milestone in venture capital financing, creating an entirely new financial instrument that combines portfolio diversification with insurance-backed guarantees. The bespoke structure developed by New Model, with Wallace's expert legal guidance, establishes a new paradigm for venture funding that de-risks investors’ allocation and enables onward investment into high growth potential companies.
New Model Venture Capital, founded by James King and Mark Hanington, has built a reputation for delivering fast, intelligent capital to high-growth companies and consistently achieving 30%+ IRR over the past fifteen years. Proceeds from this pioneering transaction will be deployed across New Model's portfolio of breakthrough technologies, including follow-on investments in MedTech, AI/Machine Learning, Insurance and FinTech ventures.
"The Wallace team's exceptional understanding of complex transactional structures and their ability to navigate multiple stakeholder requirements was instrumental in bringing this first-of-its-kind financing to being," said James King, CEO of New Model Venture Capital. "Their expertise and collaborative approach not only helped secure the initial funding but also enabled us to efficiently execute subsequent portfolio investments with robust protections for all parties."
The Wallace transaction team was led by Angus Young and Alice Curtis, who worked seamlessly with New Model’s Directors James King and James Stephenson, investors, regulators, insurers, banking parties, trustees, and the various tax and service providers to develop the comprehensive documentation framework needed for this innovative financial product.
