Buyout firm GTCR has acquired Premium Credit Limited for an undisclosed amount. The seller was MBNA Europe, a subsidiary of Bank of America Corp. Terms were not released.
GTCR, a leading private equity firm, today announced that it has acquired Premium Credit Limited (“Premium Credit” or the “Company”) from MBNA Europe, a subsidiary of Bank of America Corporation. Premium Credit Limited is a leading provider of payment facilitation and financing services in the UK and Ireland. GTCR is partnering with new CEO Andrew Doman and existing management of Premium Credit to recapitalize the Company and further invest in the Company’s market-leading technology and services offerings going forward. Total asset value was approximately £900 million ($1,450 million).
Founded in 1988, Premium Credit works in partnership with a diverse network of leading insurance brokers and carriers to enable businesses and individuals to pay insurance premiums in installments rather than a single annual payment. The Company also provides payment facilitation and financing services for professional fees, school fees, membership subscriptions and other commercial services. Across its business lines, Premium Credit participates in processing and funding more than 22 million transactions annually associated with approximately £3 billion in payment volume for approximately 2 million customers.
GTCR is partnering with Andrew Doman and Premium Credit’s existing management team to expand Premium Credit’s strong customer relationships and further enhance its technology and service offerings. Mr. Doman, formerly Chairman and CEO of Russell Investments and Head of Insurance Consulting at McKinsey & Co London, has joined Premium Credit as Chief Executive Officer. Current CEO Nick Pearce will remain actively involved with Premium Credit as a consultant and member of the Board of Directors, Simon Moran will remain as Chief Marketing Officer and Head of Insurance Premium Finance, and Robert Allan will remain as CFO.
“We are thrilled to complete the acquisition of Premium Credit Limited. Our extensive experience in insurance services, payment processing, and specialty finance provides GTCR with a unique perspective on the Company and its opportunities going forward,” said Collin Roche, Managing Director at GTCR. “We look forward to supporting Andrew Doman and the management team’s efforts to drive product expansion and continued technology investment in Premium Credit’s operations and service delivery. We will also selectively evaluate building on the company’s success through acquisitions as well as geographic expansion opportunities in Europe and North America.”
“GTCR’s investment is a strong endorsement of the attractive business built by Premium Credit’s management and employees over many years,” noted Mr. Doman. “Premium Credit has strong customer relationships and a tremendous quality of service orientation. I am excited to join such a talented team and look forward to growing the franchise.”
The acquisition of Premium Credit was supported by a consortium of leading banking institutions. Barclays Capital, Lloyds Banking Group, Deutsche Bank, HSBC and Société Générale have committed to a long-term financing facility to support Premium Credit’s existing funding obligations and future growth. The notes issued under the facility have received an A (sf) rating by DBRS, Inc.
Barclays Capital and the Kessler Group advised GTCR on the transaction. Kirkland & Ellis LLP and Mayer Brown International LLP served as legal counsel to GTCR. GTCR’s investment in Premium Credit was funded from GTCR Fund X, a private equity fund raised in 2011 with $3.25 billion of committed capital.
About Premium Credit Limited
Founded in 1988, Premium Credit provides third party insurance premium finance and other fee-related payment financing services, allowing businesses and consumers to pay by periodic installments instead of a single annual payment. The company was purchased by MBNA in 2004 and subsequently transitioned to Bank of America’s ownership following MBNA’s sale in 2005. Premium Credit operates through its headquarters in Epsom, England, UK, and a second office in Dublin, Ireland. For more information, visit www.premium-credit.co.uk
Founded in 1980, GTCR is a leading private equity firm focused on investing in growth companies in the Financial Services & Technology, Healthcare and Information Services & Technology industries. The Chicago-based firm pioneered the “Leaders Strategy” – finding and partnering with management leaders as the critical first step in identifying, acquiring and building market-leading companies through acquisitions and organic growth. Since its inception, GTCR has invested more than $10.0 billion in over 200 companies.