How Triple Point’s SME Debt Finance team helped to facilitate Water Babies' international expansion plans

Having earned a reputation for arranging fast and flexible financing for event-driven transactions, the SME Debt Finance team at Triple Point helped to facilitate the acquisition of Water Babies, the worlds largest baby swim school, by two US investment firms as part of major international expansion plans. The transaction, that took place in October 2024, was driven by Triple Point’s track record of arranging finance for business acquisitions and shareholder buyouts for both UK corporates and firms that have received private equity investment.

Who Are Water Babies?

Water Babies is the world’s largest baby swim school providing swimming lessons to more than 80,000 babies every year, with more than 70 franchise outlets across the UK, Ireland, Canada, The Netherlands and the US. Since its launch in 2002, Devon-based Water Babies has won a host of consumer awards and has formed partnerships with organisations including Swim England and the Royal Lifesaving Society. Water Babies is considered as the leading authority within baby swimming in the UK. It is also a Certified B-Corp, committed to achieving the highest standards of social and environmental performance, transparency and accountability, much like Triple Point.

How The SME Debt Finance Team Supported The Acquisition Of Water Babies

Triple Point’s SME Debt Finance team was introduced by another Triple Point client to the two investment firms who were partnered in exclusivity to acquire the business: Elmsley Capital and Westerly Group. For them, a key aspect of the transaction was their strategy for international expansion, particularly in the US market. They sought a loan originator that could not only help to arrange financing but also fully understand their growth story and align with their strategic vision. Commenting on the relationship, Arnica Young, Relationship Director at Triple Point, said: “Our role in this was to demonstrate flexibility and a willingness to understand their ambitions. By understanding their long-term goals and tailoring our approach to meet their needs, we positioned ourselves as capable of delivering outcomes that aligned with their objectives.”

What Made Triple Point Stand Out?

The SME Debt Finance team demonstrated flexibility and initiative in several ways. A key factor was their established track record with another Private Equity sponsor, who was the introducer to this transaction. The introducer was able to provide Elmsley Capital and Westerly Group with a reference to their approach given Triple Point had originated three previous lending transactions with the introducer. This history gave all parties confidence in the ability to deliver effectively. Triple Point also ensured responsiveness throughout the process, particularly in meeting the acquirer’s time-sensitive requirements. The team did this by securing internal buy-in at an early stage to ensure Triple Point could arrange the necessary debt which would support the expansion plan, which led to efficient and informed credit decision-making. The combination of a strong track record, flexibility in structuring, and responsiveness in execution meant Triple Point were able to meet the acquirers’ needs efficiently and effectively.

The international Growth Opportunity For Water Babies

In October, Water Babies announced the successful acquisition by Elmsley Capital and Westerly Group, noting that “this change of hands will provide a springboard for Water Babies Group Ltd to build on its success in the UK and existing international markets”. Company founder Paul Thompson will remain involved in the business as a Non-Executive Board Director.

Commenting on the transaction, Ross Brendel, Managing Partner of Westerly Group said; “The cross-border nature of this investment under a tight timeframe created a number of complexities for both us and seller. We selected Triple Point because of their reputation, flexibility, and partnership orientation—which all proved critical in achieving an efficient closing."

Why Work With Triple Point’s SME Debt Finance Team?

Private equity firms choose to work with Triple Point because they recognise Triple Point’s ability to understand unique borrower requirements, support longer-term objectives, and deliver value beyond just the financial aspect of the deal through the lending businesses Triple Point represents. If you would like to hear more about what Triple Point’s SME Debt Finance team could do for your organisation, please get in touch at smedebtfinance@triplepoint.co.uk.