Exponent Private Equity has acquired Enra Group. Financial terms weren’t announced. Sellers include Livingbridge. Enra, of the U.K., is a specialist provider of mortgage finance. Livingstone advised Enra Group.
ENRA Group continues its growth strategy with acquisition by Exponent
London, 16 November 2016
Livingstone has advised the shareholders of ENRA Group, including Livingbridge, on its sale to Exponent Private Equity. ENRA Group is a specialist provider of mortgage finance.
This is the fourth transaction the Livingstone team have advised ENRA on, previously introducing exiting Chairman, David Campbell, on his investment in 2013, raising growth capital from Livingbridge in 2014 and their subsequent acquisition of West One Loans, also in 2014.
ENRA lends and brokes short-term bridge mortgages as well as distributing specialist second charge and buy-to-let products. The business has enjoyed strong growth on the back of its bespoke manual underwriting process that allows it to offer a superior customer centric approach. ENRA is unique in both lending from its own balance sheet and placing loans with external investors via its West One platform, in addition to operating a leading master broker under the Enterprise brand.
With the backing of Exponent, ENRA has plans to expand into the specialist buy-to-let and second charge mortgage market, continuing to focus on products that meet the needs of underserved customers in a sector that is experiencing significant change. David Stewart, former CEO of Coventry Building Society, will join the board as Chairman, and brings a wealth of experience in long-term secured lending.
The transaction is subject to FCA approval.
Danny Waters, CEO of ENRA, said: “This is the fourth deal that James Lever and the team at Livingstone have advised me on since I first met them in 2012. They have played a key role in helping us execute our strategy, financing the growth of the business and have provided invaluable support to the management team. This process and transaction has been highly complex but they have helped us reach an outcome that all stakeholders are extremely happy with.”
Shani Zindel, Partner at Livingbridge, added: “Livingstone introduced us to ENRA in late 2013 as part of a formal fundraising process. They had previously worked with David Campbell who invested as Chairman earlier in the year. This initial deal was key to being able to present a rounded team and business poised for significant growth, and they did an excellent job building competitive excitement around the opportunity. We were thrilled when we won the deal. They subsequently worked on the West One acquisition, and when it came to the exit, they were a trusted and obvious choice to advise all the shareholders.They did a first class job in what was a complex and technically difficult deal, and we are very pleased with the outcome.”
James Lever, Partner at Livingstone, commented: “We are delighted to have advised ENRA and Livingbridge on another successful transaction. Danny, David and the management team have led the business on an impressive strategic journey and it has been a pleasure to assist them along the way. The specialist lending market is now undergoing considerable change and we strongly believe that ENRA is uniquely positioned to capitalise on this through their multiple routes to market and flexible funding model.”
Notes to Editors:
About Livingstone Partners LLP
Livingstone is an international mid-market M&A and Debt Advisory firm, with offices in Beijing, Chicago, Düsseldorf, London, Los Angeles, Madrid and Stockholm. Its 100 staff complete c.60 deals per annum.
ENRA Group’s businesses operate in specialist mortgage lending. ENRA has three separate but complementary trading divisions: Enterprise Finance, West One Loans and Aura Finance.
Enterprise Finance was formed in 2002 and in 2010 was subject to a management buy-out. When the leadership team launched Aura Finance in 2013, Enra Group was created. West One Loans, founded in 2007, was acquired by Enra in 2014 and since has been integrated into the Group as its lending operations arm. Group lending now stands at over £300M, with more than £1Bn lent to-date.
Enterprise Finance is the UK’s leading Master Broker for second charge mortgages, focused exclusively on the intermediary channel. Enterprise also brokers bridging loans as well as complex buy-to-let and related commercial mortgages. In 2014, Enterprise Finance was named the 15th fastest-growing company in the UK according to The Sunday Times / BDO Profit Track 100 programme and in 2015 was ranked 22nd in The Sunday Times / Virgin Fast Track 100.
West One Loans and Aura Finance operate as bridging loan lenders, funding bridging finance on residential and commercial properties for both regulated and unregulated loans.
- Livingbridge is a mid-market private equity firm with UK offices in London, Birmingham, Manchester and an Australian office in Melbourne.
- Livingbridge applies a research-led, sector-focused approach to investment in unquoted companies in the UK, Europe and Australia.
- Core areas of interest are: Business Services; Financial Services; Consumer Markets; Healthcare & Education; Technology, Media & Telecommunications.
- Livingbridge typically invests in transactions where the transaction size is between £5m and £125m in value, in companies with profits in excess of £1m (typical Livingbridge investment between £2m and £50m).
- Livingbridge invests on behalf of both institutional and retail investors (Livingbridge 6, Livingbridge 5, Livingbridge Enterprise 2 and the three Baronsmead VCTs).
- Livingbridge has funds under management of £2.1bn as at 1 November 2016.
About Exponent Private Equity
Exponent is a private equity firm which typically invests in UK headquartered businesses with enterprise values between £75m and £350m. Its team, which has over 175 years of collective experience, works with businesses across a broad range of sectors; seeking to unlock value and drive growth by finding the right companies, identifying their potential and working with the right people to develop them. The company’s aim is to make excellent returns for investors and deliver profitable relationships for managers.