Irish entrepreneur Martin Dunphy has sold his 20% stake in Marlin Financial Group to Cabot Credit Management. CCM is majority-owned by Encore Capital Group, a US publicly listed company with the remaining equity being held by J.C. Flowers & Co. The sale was made alongside majority shareholder Duke Street, which also sold its stake in Marlin as part of the same transaction. The deal values the company at approximately 295 million pounds ($480 million).
Leading Irish entrepreneur Martin Dunphy announced today that he has sold his 20% stake in Marlin Financial Group (‘Marlin’ or the ’Company’), to Cabot Credit Management (‘CCM’). CCM is majority-owned by Encore Capital Group, Inc., a US publicly listed company (NASDAQ: ECPG), with the remaining equity being held by a fund advised by J.C. Flowers & Co. The sale was made alongside majority shareholder Duke Street, which also sold its stake in Marlin as part of the same transaction. The deal values the Company at approximately £295 million (GBP) / US$480 million.
Dunphy founded Marlin, a UK-based leading purchaser of non-performing consumer debt in 2002. In 2010, he partnered with mid-market private equity firm Duke Street who acquired a 58% stake in Marlin and invested in the Company. He remained as the Company’s Group Chief Executive until July 2013 when he became non-executive Deputy Chairman to facilitate a complete exit from the business.
Marlin has consistently been ranked amongst the UK’s 100 fastest growing companies by The Sunday Times, generating sales growth of 55% per annum between 2009 and 2013. Marlin owns portfolios with a face value of £2 billion and manages over £7 million of collections per month. In 2013, Marlin originated over £150 million of purchases.
Martin Dunphy commented: “I am delighted that Marlin is going to a good home. The Company continues to be a key part of the UK’s credit value chain, helping both banks to free up capital and people to take responsible action to return to creditworthiness.
“I am extremely proud of our company which began life in my Wimbledon living room just a decade ago. The fact that Marlin has today grown into a highly profitable and recognised industry leader is testament to what you can achieve when you assemble a great group of smart, motivated and ambitious people.
“I see significant growth potential in this sector internationally and in due course hope to take advantage of new opportunities to team up with other partners to replicate this success in new markets.
“I would also like to take this opportunity to say thank you to Miles Cresswell-Turner and Jason Lawford of Duke Street, whose support and belief in the company allowed us to continue on our growth trajectory.”