Cinven acquires Premium Credit from GTCR in £462m deal

Following completion of the deal, the business will undertake an acquisitive growth strategy and look to expand its product portfolio.

The deal marks the eleventh investment to be drawn from Cinven's fifth fund, which held a €5.3bn final close in June 2013.

The GP stated it was attracted to the deal by the growth in the UK speciality finance market. It also cited Premium Credit's management team and the company's market position as motivation.

Previous funding
GTCR acquired Premium Credit from MBNA Europe, an affiliate of Bank of America, in November 2012. At the time, the GP stated the total asset value was approximately £900m. A consortium comprising Barclays Capital, Lloyds Banking Group, Deutsche Bank, HSBC and Societe Generale provided financing to support the original deal.

Company
Epsom-based Premium Credit is a speciality finance provider specialising in credit agreements to cover expenses including insurance premiums, school fees and professional fees. Founded in 1988, the business now has a headcount of around 300. It has 2 million customers.

People
Maxim Crewe and Peter Catterall are partners at Cinven. Andrew Dorman is chief executive of Premium Credit.

Advisers
Equity – Bank of America Merrill Lynch (Corporate finance); Oliver Wyman (Commercial due diligence); Freshfields, Adrian Maguire (Legal); EY (Financial due diligence).
Company – JP Morgan (Corporate finance); Kirkland & Ellis, Gavin Gordon (Legal).
Management – Travers Smith, Chris Hale, Adam Orr, Matt Kichenside, Adrian Duncan, Russell Warren, Tom Rickford (Legal).

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• Financials
• UK / Ireland
• Exits
• Buyouts
• United Kingdom
• Cinven
• Secondary buyout