Case Study 3min(s)

Kester Capital-backed, drug discovery software developer Optibrium secures Annual Recurring Revenue based finance package to accelerate business growth

Shawbrook’s Recurring Revenue Finance solution will support Optibrium’s current expansion plans and provide additional capital for future growth.

A person sits at a desk looking at computer monitors displaying colorful scientific diagrams and models of viruses and data charts, suggesting research or analysis in a laboratory or office setting.
  • Optibrium is a leading developer of software and AI solutions aiding drug discovery and molecular design for the global pharmaceutical and biotech industries.  
  • The business has seen rapid growth and sought to raise its inaugural debt facility with the flexibility to provide both funded growth capital at closing alongside committed but undrawn funding to confidently capitalise on future opportunities.
  • Leveraging the revenue generated from Software-as-a-Service subscription contracts, Shawbrook structured an annual recurring revenue finance (ARR) based deal across term loan, revolving credit facility (RCF) and committed growth/acquisition facilities. 

Drug discovery software provider Optibrium has agreed a strategic debt package with Shawbrook, providing additional growth capital alongside future committed facilities to accelerate its expansion plans. This Recurring Revenue Finance deal is the latest completion for Shawbrook’s ARR lending product, marking another milestone in the lender’s offerings in the Financial Sponsor space.

Led by a founder-management team since inception in 2009 and operating in the UK and the US, Optibrium’s suite of innovative in silico platforms and AI solutions is utilised in the research workflows of more than 160 global organisations. Cutting-edge science, backed up by rigorous research, underpins their drug discovery software that increases the speed, efficiency and productivity of chemistry discovery programs. Following initial and continued investment from London-based Kester Capital since February 2021, Optibrium has seen rapid adoption of its cloud-based product suite, growing organically and through acquisition.

Whilst continuing to invest for growth, management were looking for a debt partner that could structure a deal around the substantial value and inherent credit strength of the business and its annually recurring income. The multi-million ARR-based facility provided by Shawbrook delivered the flexibility needed, which alongside a day 1 drawn term loan, included a working capital RCF and a committed delayed-draw term loan with the optionality to fund future organic growth or acquisitions.

This Recurring Revenue Finance transaction marks another completion under Shawbrook’s ARR lending product, launched in 2024. Offering an alternative to EBITDA (earnings before interest, taxes, depreciation and amortisation) based loans, facilities are specifically designed for private equity-backed businesses and leverage the forward visibility of contracted revenue with proven unit economics and retention metrics to deliver funding for buyouts, acquisitions and growth initiatives.

Peter Ralph, Partner at Kester Capital, said:

“We have been delighted by Optibrium’s exceptional growth and continued innovation since Kester’s initial investment. The debt package arranged by Shawbrook aligns with Optibrium’s strategic requirements, and will ensure the business remains at the cutting-edge of drug discovery.”

Ally Henderson, CFO at Optibrium, said:

“Successfully raising a debt facility represents another key milestone for Optibrium, and is a validation of the outstanding work being done across the organisation. Jack and the team at Shawbrook took the time to gain an in-depth understanding of the business, resulting in a flexible debt facility that supports both our near-term requirements and longer-term strategic objectives, and we’re looking forward to working with them.”

Jack Longden, Director at Shawbrook, said:

“Optibrium is an exciting business which has shown impressive growth since Kester Capital’s investment in 2021. We're delighted to work with both parties, and to have structured a flexible financing package that supports the management team's vision for technology advancement and global expansion. We look forward to being their trusted financing partner as they continue to innovate in the drug discovery space.”

Osborne Clarke LLP provided legal advice and Azets provided Financial Due Diligence support to the Bank.

How can we help you build your business?

Our team of experts across the UK are ready and waiting to speak to you about how we can help you realise your business aspirations. Use our enquiry form to get in touch, or contact the team directly through our contact page.