This is the first time NatWest has led portfolio funding arrangements for a wine and spirits inventory finance platform, with Ferovinum’s unique supply chain technology promising greater flexibility and efficiency for businesses within the sector.

The deal is comprised of an £80m phased transaction from NatWest, supplemented by contributions from Ferovinum equity investors and BCI Capital, Ferovinum’s main portfolio funding partner since 2021. The transaction will not only unlock larger-scale capital provision to wine and spirits enterprises, but also foster greater access to capital, overcoming the industry’s long-standing limitations due to its niche classification, fragmentation, and lengthy maturation periods.

Established in London in 2018 by Mitchel Fowler and Daniel Gibney, Ferovinum employs proprietary technology favoured by over 30 businesses, including distilleries, wineries, merchants, bottlers, and brand owners, offering them agility, speed, and a partnership model. Its platform has so far financed over 5 million bottles for a diverse clientele, ranging from disruptive, sustainability-focused brands like The Uncommon to iconic global whisky brands like The Glenturret.

Ferovinum’s CEO, Mitchel Fowler, commented: “We are thrilled to have NatWest on board as our first banking partner in a deal that marks a real step-change in how capital is deployed into the wine and spirits industry.

“Ferovinum’s technology has been custom built to overcome the barriers that have previously stopped institutional capital reaching this sector, giving banks the right tools to get involved.

“NatWest immediately recognised our platform’s potential, and we have been impressed by their ability to leverage industry expertise and a shared commitment to innovation and supporting small and medium sized companies as they grow.”

Andrew Barraclough, head of Asset Based Lending Origination at NatWest, said: “Stable access to credit is crucial to the success and growth of SMEs and their positive impact on the economy. Our financing package for Ferovinum is another example of our commitment to removing barriers to enterprise, allowing them to grow. Ferovinum shares our commitment to serve SMEs in the UK, and we are looking forward to working together with our new customer in the future.”

Sam Kemp, CEO of BCI Capital, added: “BCI partners with innovators who, like Ferovinum, bring tech-enabled financing solutions to address underserviced areas of the market.

“Having worked with the Ferovinum team since 2021, it’s been great to witness first-hand the business broadening its reach into the market.

“We’re excited to continue to partner with Ferovinum – now alongside NatWest – as the business moves to its next phase of growth.”

Ferovinum confirmed that the £100 million will be deployed into a wide range of wine and spirits enterprises over the coming months. It will also support the ongoing evolution of their platform and a UK and global expansion plan.