LDC backs £110m buyout of Evolution Funding

The transaction is a carve-out from a holding company that included other automotive services and will see the newly independent business focus on dealer finance, online services and the development of its technology. Evolution will also look to expand its presence in the B2B and consumer markets.

Following the deal, co-founders Lee Streets and Jeremy Levine will continue to lead the business alongside sales director Chris Coverdale and finance director Kevin Kaye.

LDC investment director Lawrence Dean and director Andy Lyndon will take seats on the Evolution board of directors as part of the deal. The firm has also introduced former uSwitch CEO Steve Weller as Evolution chairperson and former Lex Autolease managing director Tim Porter as non-executive director.

Santander and Aviva Investors have provided acquisition finance facilities to support the transaction. The deal is subject to regulatory approval.

Company
Chesterfield-headquartered Evolution funding is a web-based B2B car finance broker. Its Evolve platform automates the underwriting process, from credit checks and valuations, to decision-making and selection of appropriate products. The company works with 34 finance providers and its products are also used at point of sale in car dealerships. Evolution has also developed a consumer-focused product named MyCarCredit.

The business brokered around £430m in 2018 and has a headcount of 200.

People
LDC – Lawrence Dean (investment director); Andy Lyndon, Alistair Pendleton (directors); Dan Gluckman (investment executive).
Evolution Funding – Lee Streets (chief operating officer, co-founder); Jeremy Levine (CEO, co-founder); Chris Coverdale (sales director); Kevin Kaye (finance director).

Advisers
Equity - Gowling WLG (legal); EY (financial due diligence); CIL (commercial due diligence).
Company – KPMG Corporate Finance, Khush Purewal, Si Heath, Taj Lalli (corporate finance); Mishcon de Reya (legal); BDO (financial due diligence).
Debt – DLA Piper (legal).

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• Topics
• Buyouts
• UK / Ireland
• Financials
• United Kingdom
• LDC
• KPMG
• EY (Ernst & Young)
• BDO LLP
• DLA Piper