Cinven strikes a £460m deal for Premium Credit

Private equity firm Cinven yesterday clinched a £462m takeover of lender Premium Credit, adding another outfit to its growing list of financial services portfolio companies in Europe.

 

Premium Credit, which lends to consumers and small and medium sized businesses, is led by former McKinsey stalwart Andrew Doman and employs about 300 people at its base in Epsom, Surrey. 

 

 

The company swooped on the business after it was put up for auction by Chicago based private equity house GTCR.

 

“The company provides us with an exciting platform from which to capitalise on growth opportunities in the broader UK specialty finance market through the expansion of the company’s existing product portfolio, new product launches and selective acquisition opportunities,” Cinven partner Maxim Crewe said. 

 

Cinven has been developing a strong franchise targeting European financial service providers following the shake up of the banking sector, in the wake of the financial crisis. 

 

 

Premium Credit, once owned by a Bank of America subsidiary, joins life insurer Heidelberger Leben, a former division of Lloyds Bank in Cinven’s portfolio. Cinven also added assets to its life insurer Guardian Financial Services by buying Ark Life from Allied Irish Bank last year. 

 

Aircraft leasing firm Avalon and Partnership round off the portfolio.