Carlyle provides £370m in debt financing for Caffè Nero 

The global investment firm said the transaction had enabled Caffè Nero to reduce its debt exposure, strengthen its balance sheet and provided it with additional funds to support its growth plans. 

The ownership structure of the business is unchanged, with founder and chief executive Gerry Ford and his family and friends remaining majority shareholders. 

Ford said: “Our new capital structure will allow us to focus on future growth, and I very much look forward to working with Carlye as we leverage their financial and strategic expertise to take the Caffè Nero brand to new heights.” 

Caffè Nero was founded more than 20 years ago and has over 1,000 stores across 10 countries, of which 750 are based in the UK. It employs 7,700 people, with 5,600 UK-based.

The coffee shop chain struggled during the pandemic as lockdown forced it to close its doors for months at a time. In 2020 it launched a Company Voluntary Arrangement, (CVA) which allowed it to renegotiate terms with its landlords and other creditors, the BBC reported.  

Merrill Goulding, a managing director in Carlyle’s illiquid credit platform, added: “We are delighted to partner with Caffè Nero, a much-loved high street brand thanks to its reputation for providing high-quality, premium coffee over several decades. 

“We are excited to support the many growth opportunities that lie ahead for the company as it continues to capitalise on its competitive offering and market-leading positioning.”