Cinven and CVC Capital Partners have closed its previously announced acquisition of UK-based NewDay, a provider of consumer credit. The seller was Värde Partners. No financial terms were disclosed.
London, January 26, 2017 – Värde Partners, the $12 billion global alternative investment firm, today closed on the sale of NewDay, a provider of consumer credit in the U.K., to funds managed and/or advised by private equity firms Cinven and CVC Capital Partners. The sale was announced in October 2016.
Värde acquired NewDay (formerly SAV Credit Ltd.) in 2011 and supported the management team through both the rebranding of the company to NewDay and the acquisition of Santander’s U.K. retail cards business in 2013.
“We are pleased to have helped transform NewDay,” said Elena Lieskovska, Senior Managing Director and European Head of Värde’s Specialty Finance business. “Through our investment, we have been able to grow NewDay into a significant provider of financial services in the U.K., and I’m confident that it will continue to thrive and deliver the kind of service its customers and partners currently enjoy.” During the time Värde held the business, NewDay’s receivables grew from £600 million to £1.6 billion. NewDay now serves more than 5 million customers.
“Consumer finance continues to be a focus for Värde. Since our acquisition of NewDay in 2011, we have acquired and grown multiple consumer finance businesses,” said Rick Noel, Partner and Global Head of Varde’s Specialty Finance business. “NewDay is a great example of how firms with strong market knowledge and underwriting capabilities can find growth opportunities, especially as banks reduce their consumer lending. We expect this trend to continue over a number of years,” he continued.
Värde’ private funds have a number of other holdings in consumer finance including significant equity stakes in WiZink, a consumer specialist bank in Iberia and Latitude Financial Services, a leading consumer finance business in Australia and New Zealand. The firm recently announced its intention to cause certain of its private funds to purchase CitiFinancial Canada, a leading community-based lender in Canada.
About Värde Partners:
Värde Partners is an $12 billion global alternative investment adviser focused on investing capital and resources across multiple segments and markets that includes corporate assets and sovereign debt, residential mortgages, real estate, specialty finance and transportation. Värde sponsors and manages a family of private investment funds with a global investor base that includes foundations and endowments, pension plans, insurance companies, other institutional investors, and private clients.
NewDay is a leading consumer finance provider, specialising in the U.K. credit card market. With more than 5 million customers, NewDay provides products in two unsecured credit market sectors – Near-Prime and Co-Brand. In the Near Prime sector, NewDay has three products – aqua, marbles and Opus. In the Co-Brand sector, NewDay provides credit card products in partnership with several of the U.K.’s established retailers including Debenhams and House of Fraser.