GTCR Announces Sale of Premium Credit Limited
January 13, 2015
Sale reinforces value of firm’s Leaders Strategy™ to transform complex corporate carve-out.
GTCR, a leading private equity firm, announced today it has signed a definitive agreement to sell Premium Credit Limited (“PCL”) to Cinven Partners LLP for £462 million.
Premium Credit Limited is the leading insurance premium finance company in the United Kingdom and Ireland. PCL 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. PCL also provides payment facilitation and financing services for professional fees, school fees, membership subscriptions and other commercial services.
In executing its Leaders Strategy™, GTCR partnered with new CEO Andrew Doman to acquire PCL in October 2012 from MBNA Europe Limited, a subsidiary of Bank of America Corporation (NYSE:BAC). Since that transaction, the business experienced a significant transformation. PCL established an innovative standalone asset-backed funding facility with seven leading banks, completed the carve-out from Bank of America and made material investments to expand its strong customer relationships and service offerings.
“The execution of this corporate carve-out and the subsequent growth and improvement of the business is another example of how GTCR executes the Leaders Strategy™,” said GTCR managing director Collin Roche. “Together with PCL CEO Andrew Doman and an excellent management team, we realized the untapped potential of PCL’s leading market position while enhancing capabilities and creating a stronger value proposition for the company’s partners and customers.”
Aaron Cohen, GTCR managing director, added, “Andrew Doman, chief marketing officer Simon Moran and the entire team have furthered PCL’s market leadership by investing in people and technology, resulting in strong growth and exceptional customer service. We believe PCL is well-positioned for continued growth.”
“We’d like to thank GTCR for their commitment and support in developing PCL over the last two years,” said Mr. Doman. “GTCR has been a great partner, and we are excited to continue supporting our customers with innovative services and solutions.”
J.P. Morgan Limited served as PCL’s financial advisor, and Kirkland & Ellis LLP provided legal counsel.
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 in core domains to identify, acquire and build market-leading companies through transformational acquisitions and organic growth. Since its inception, GTCR has invested more than $10 billion in over 200 companies. For more information, please visit www.gtcr.com.
About Premium Credit Limited
Founded in 1988, Premium Credit Limited is the number-one insurance premium finance company in the UK and Ireland. Across its business lines, Premium Credit participates in processing and funding 25 million transactions annually, associated with over £3.5 billion in payment volume for 2 million customers. Premium Credit has a staff of more than 300 employees and operates through its headquarters in Epsom, England, UK, and a second office in Dublin, Ireland. For more information, please visit www.premium-credit.co.uk.