Pine Brook writes off The Car Finance Company investment

According to documents filed with Companies House, the GP has been in discussions to restructure its investment in the company as well as undertaking a refinancing for the business. However, the filing also adds that, based on the progress of those discussions and the company's trading results, the directors of the holding company consider the investment in The Car Finance Company to be non-recoverable.

In The Car Finance Company's most recent results, the business stated the principal risk it faced was that customers would default on payments and the value of their vehicles would not meet expectations. According to an article published by The Times, the company's proportion of arrears had increased from 8.2% in 2015 to 18.4% in 2016.

Pine Brook is invested in The Car Finance Company via its second fund.

Previous funding
Pine Brook acquired the company in March 2015 in a deal valuing the business at £50m.

Company
Founded in 2007 and headquartered in Portsmouth, The Car Finance Company provides car loans. The company recorded a pre-tax loss of £17.8m in the year to June 2016, according to publicly available records, with revenues of £50m.

People
Pine Brook Partners – Lawrence Marsiello, Nicholaos Krenteras (managing directors).

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