Hardman & Co Research Begins Coverage on Duke Capital

On April 29, 2024, Hardman & Co Research announced the initiation of coverage on Duke Capital (DUKE). The report highlights DUKE's approach to supporting SMEs by offering hybrid capital solutions that combine aspects of equity and debt investments. This strategy allows companies to maintain control while targeting equity-like returns with debt-level risks.

DUKE's financial products include loan and participating preference share elements, which are designed to support a high and growing dividend payout for 2024 and beyond. Projections show a 9.0% dividend in 2024, with a 7% increase anticipated by 2026. Additionally, DUKE employs private equity-style due diligence and board involvement post-investment to minimize risks and optimize portfolio performance. The firm's methods aim to align the interests of management with those of shareholders, enhancing potential capital growth through early exit fees and equity stakes.