13 December 2022

Duke Royalty Limited

("Duke Royalty" or "Duke")

Follow-On Investment into Existing Royalty Partner

Duke Royalty, a provider of alternative capital solutions to a diversified range of profitable and long-established businesses in Europe and North America, is pleased to announce a follow-on investment of £3.2 million into existing royalty partner Tristone Healthcare Limited ("Tristone") to fund its latest acquisition.

Tristone provides specialist residential and domiciliary care in two end markets: i) high acuity adults with severe mental, physical or learning disabilities; and ii) care leavers, aged between 16 and 19, who are transitioning out of social care and into independent living.

Highlights:

·     Duke's funds will facilitate Tristone's acquisition of K Bond Healthcare Limited, trading as Next Steps ("Next Steps"), a well-respected residential and nursing care provider with operations across Greater Manchester

·    The financing increases Duke's total investment into Tristone to £17.6 million. The investment terms are the same as Duke's previous follow-on investment into Tristone, including a starting yield of 13.5% and a +/- 6% annual revenue adjustment factor in respect of royalty payments due

·    Next Steps represents Tristone's third acquisition supported by Duke, in line with Tristone's stated buy & build strategy

Neil Johnson, CEO of Duke Royalty, said:

"It is great to be supporting Tristone's acquisition of another successful company with this follow-on funding. Next Steps provides the highest quality of care and maintains a culture that aligns well with Tristone's own core set of beliefs. This acquisition represents an important strategic step in expanding Tristone's geographical presence in the North West and there is scope to open further facilities, replicating Next Steps' existing and highly successful model.

"Our flexible financing model is perfect for companies such as Tristone which are executing an effective buy and build strategy and our shareholders benefit from the growth that we achieve through expanding our relationship with a trusted partner."

Further information regarding Next Steps

Next Steps, which was founded in 2015, specialises in providing individuals with chronic and treatment-resistant mental illnesses with a therapeutic home environment to receive the highest quality of residential and nursing care. Employing 42 staff, and supporting 22 individuals, the provider currently operates across four specialist nursing homes. The care package for each service user is assessed on an individual basis, with Next Steps being a premium provider for complex cases at the higher end of the sector typical metrics.

Duke Royalty Portfolio

A full list of Duke's current Royalty Partners are now included for reference on the Partners page of our website: www.dukeroyalty.com/partners

***ENDS***

For further information, please visit www.dukeroyalty.com or contact:

About Duke Royalty

Duke Royalty Limited provides alternative capital solutions to a diversified range of profitable and long-established businesses in Europe and abroad. Duke Royalty's experienced team provide financing solutions to private companies that are in need of capital but whose owners wish to maintain equity control of their business. Duke Royalty's royalty investments are intended to provide robust, stable, long term returns to its shareholders. Duke Royalty is listed on the AIM market under the ticker DUKE and is headquartered in Guernsey.