Duke Royalty Limited has announced its proposed change of name to Duke Capital, along with a new corporate website and renewed messaging. The company conducted a review of the SME financing sector and concluded that its unique offering needed to be communicated more clearly to business owners and stakeholders. The review highlighted the rapid growth and evolution of the global private credit market, with Duke's solution being best classified as direct lending.
The company plans to reframe its product as 'hybrid capital', a financing solution blending features of private equity and private credit products, offering more flexibility than traditional debt or equity alone. Despite the name change, Duke's core product, investing policy, and investment criteria will remain unchanged, continuing to provide business owners with a unique 'corporate mortgage' debt product with equity-like attributes.
Duke will also have additional flexibility to take equity ownership over 30% when necessary, without aiming to take control of the business or force an exit. The company will maintain its focus on receiving monthly recurring cash revenue from its partners and investing in profitable, long-established private businesses in the UK, Western Europe, and North America.
The proposed change of name to Duke Capital Limited will be subject to approval at an Extraordinary General Meeting (EGM). The company's dividend policy, stock symbol, and shares outstanding will remain unchanged. Duke has launched a new corporate website, and the CEO, Neil Johnson, expressed excitement about the findings of the review, emphasizing the opportunity to engage with more business owners and appeal to a broader cross-section of investors.
The company will hold an EGM on 20 February 2024 to approve the change of name to Duke Capital Limited. The TIDM 'DUKE' will remain unchanged, as will its ISIN. Duke plans to make a further announcement following the EGM to confirm when the name change will be effective. Additionally, the company aims to become an increasingly important lower mid-market capital provider, benefiting both shareholders and business owners with its renewed positioning and additional flexibility.
In conclusion, Duke Royalty Limited's proposed changes, including the name change, new website, and renewed messaging, aim to better communicate its unique financing solution and appeal to a broader range of investors and business owners.