AnaCap buys Cabot Financial from Citi

Citi had been looking to sell Cabot as part of its strategy to divest non-core assets and focus on its core banking strategy.

Morgan Stanley Alternative Investment Partners and Partners Group also co-invested in this acquisition, while AnaCap invested from its second fund AnaCap Financial Partners II that closed on €575m in May 2009.

Barclays Private Equity, which had retained a 10% stake when divesting the company in 2006, has now fully exited the business.

The deal is based on expectations that banks, utilities, telecom companies and other consumer credit providers will outsource a larger proportion of their debt management businesses. The private equity investor will merge Cabot Financial with its portfolio company Apex Credit Management to create the UK's largest debt purchasing and collection business.

Debt
No details regarding the financing structure have been disclosed.

Company
Established in 1998 and headquartered in West Malling, Kent, Cabot Financial purchases non-paid consumer debt from banks and other credit lenders that no longer wish to manage the debt internally.

The company is used to private equity ownership, having been bought by Cabot Square in 1999. It changed private equity hands in 2004 in a £100m secondary buyout backed by Barclays Private Equity and Vision Capital that later sold the business to Nikko Principal Investments, the investment arm of Citigroup Japan Holdings Corporation, for £275m in 2006. Barclays Private Equity reinvested £25m for a 10% stake as part of this transaction.

People
Fabrizio Cesario represented AnaCap on the transaction.

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