Information on the Target

Global Refund, established in 1980, is a leading international provider of travel-related financial services, known for processing approximately 14 million transactions annually across 37 countries. The company's core service, Tax-Free Shopping, stands as the predominant provider of Value-Added Tax (VAT) refund services, facilitating transactions at over 230,000 retail locations worldwide. Additionally, Global Refund has developed a rapidly growing dynamic currency conversion service called First Currency Choice, which has experienced significant expansion since its inception in 2001.

Under the leadership of Chief Executive Per Setterberg, the management team has made a personal financial commitment to this deal, further aligning their interests with those of their investors. With a robust operational framework and a diverse range of services, Global Refund is well-positioned for continued growth in the evolving travel and financial services sectors.

Industry Overview

The travel-related payment services industry is witnessing a substantial transformation, driven by an increase in international travel and a corresponding demand for efficient payment solutions. As global tourism continues to rebound post-pandemic, travelers increasingly seek to optimize their financial transactions while abroad. This necessitates innovative services such as VAT refunds and competitive currency conversion options, positioning companies like Global Refund for long-term success.

In Europe, where travel activity is particularly vibrant, the demand for VAT refund services is robust. Many travelers from non-EU countries are not only keen on shopping but also look for opportunities to reclaim taxes on their purchases. This trend is likely to persist, as consumer spending on luxury goods remains high and travel is seen as a significant part of the retail experience.

Furthermore, the digital evolution within the industry is transforming how payment services are delivered. Technological advancements enable faster and more reliable transactions, greatly enhancing customer experience. Companies that can adapt to these technological changes, like Global Refund, are positioned to capture a greater share of this growing market.

Lastly, the dynamic currency conversion market is also expanding, providing travelers with a seamless way to conduct foreign transactions. As more people travel internationally, the need for cost-effective currency solutions becomes crucial, making Global Refund’s First Currency Choice increasingly relevant.

The Rationale Behind the Deal

Barclays Private Equity's decision to support the Secondary Management Buy-Out of Global Refund is grounded in the firm's commitment to invest in sectors with high growth potential. The acquisition aligns with Barclays' strategy to strengthen its portfolio in the financial services domain, particularly in companies focused on travel-related payment solutions.

The management team’s proven track record and their investment in the deal underscore confidence in Global Refund's ability to navigate both favorable and challenging market conditions. This strategic positioning is expected to facilitate further growth leveraging the ongoing trends in international travel and spending.

Information About the Investor

Barclays Private Equity is a prominent player in the investment landscape, known for its significant contributions to the financial services sector. The firm has an impressive portfolio that includes successful ventures such as Admiral Group, Lending Solutions, and FirstAssist. This experience equips Barclays with the knowledge and resources to effectively support Global Refund in its next growth phase.

With a dedicated team actively involved in the deal—comprising Dominic Geer, Owen Clarke, and others—Barclays Private Equity aims to provide strategic guidance while enhancing operational capabilities within Global Refund. The involvement of experienced directors from Barclays is expected to positively influence Global Refund’s strategic trajectory.

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The deal presents a solid investment opportunity due to Global Refund's leading position in a niche market with considerable growth forecasts. The travel-related financial services sector is evolving, driven by changing consumer behaviors and technological innovation, positioning Global Refund to benefit from expanding market trends.

Additionally, the management's financial commitment to the buy-out embodies a shared vision for growth, which is often a positive indicator for investors. This alignment of interests suggests a strong likelihood of strategic execution and operational efficiency moving forward.

Furthermore, Barclays Private Equity's strategic insight and prior experience in similar investments enhance the overall investment case. The company’s historical success within the financial services sector suggests they will provide valuable input and guidance to Global Refund as it pursues its growth objectives.

In conclusion, this acquisition could very well represent a lucrative investment, underpinned by strong market demand, an adept management team, and a seasoned investor committed to fostering long-term growth.

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