Freedom Finance Holdings Limited / SOF Investments
Cavendish Corporate Finance, the UK’s leading sell-side mid-market M&A firm, has advised on the sale of Freedom Finance Ltd, the UK’s largest personal loan broker, to Target Group, a portfolio company of SOF Annex Fund.
Freedom Finance, established in 2007, has undergone strong growth within the loan brokerage market driven by its unique search technology, which provides customers with accurate real time quotations across a panel of both unsecured and secured lenders. Freedom Finance brokered 10,906 loans in its most recent year, up from 10,500, and is targeting 12,000 for the current year. It works with lenders such as Sainsbury’s Bank, Blemain Finance and Zopa to provide secured and unsecured finance, mainly for the purposes of loan consolidation and home improvements.
Target is a leading provider of software and outsourced services in the loans, savings and insurance markets. It has over £10bn of loans and savings running on its platform across multiple product types and customers.
The acquisition will bring together Freedom Finance’s brokerage and technology with Target’s industry knowledge, software and servicing expertise providing a compelling proposition to existing and new customers.
The SOF Annex Fund is managed by SOF Investments Limited, a private equity fund manager focused on investing in businesses in the financial and business services sectors. To date, they have invested over £1.2bn in a range of businesses across all stages of development.
Cavendish, which advised on the sale, has so far completed on the sale of eleven deals in 2014. Its previous Financial Services deals include: World First, Veritas Asset Management, Mackenzie Hall, Money Advice Direct, among others.
Nicola Georgiou, Managing Director of Freedom Finance Ltd, commented:
“We are delighted to announce that Freedom Finance has been acquired by SOF. We have very ambitious growth plans for the business and SOF are the right shareholders to help us achieve those targets. The diverse portfolio of SOF companies offer us valuable partners with which to expand into other areas of financial services using our unique sourcing platform. We have already identified a number of exciting opportunities and are looking forward to this new growth phase.”
Lindsey McMurray, Managing Partner of SOF Investments Ltd, commented:
“Freedom Finance will be a fantastic addition to the Target Group allowing us to deliver a compelling proposition with the highest standards of regulatory excellence to both existing and new customers. At SOF we seek to invest in high-quality businesses operating in specialist markets with entrepreneurial and driven management teams. Freedom Finance and the team led by Nicola Georgiou certainly have these qualities and we’re excited about working together to build a business that delivers market-leading products and services to create long-term sustainable success.”
Peter Gray, Partner and Head of the Financial Services Group at Cavendish, commented:
“Freedom Finance is an exceptional business with unique “soft search” technology that enables customers to ascertain availability of personal loans on a real time basis without impairing their credit rating. In Target Group, they have found an excellent acquirer which will be able to add considerable value to Freedom Finance by leveraging its extensive industry relationships.
“This partnership will enable us accelerate our global growth plans by investing in our people, technology, sales and marketing. I would like to thank the whole team at Cavendish for providing advice and guidance on this transformational transaction.”
“This new partnership is a very exciting opportunity for Tempcover to both consolidate its existing position and provide a platform for further growth into new verticals and markets. Many thanks to Ben and the Cavendish team who provided invaluable advice throughout the process and helped us achieve this great outcome for the Company.”
We were delighted with our decision to engage with Cavendish to advise us on our plans to bring inward investment into the group. Duncan, James Ellis and James Baker brought such complementary skills to our internal deal team. They calmly helped us navigate through all stages of the process, due diligence and through to completion. They were a pleasure to work with and I’d highly recommended them
“The Cavendish team led by Joe Stelzer and supported by Chirag Gohil did an outstanding job in identifying Begbies as a perfect home to drive our future growth. Cavendish negotiated an excellent deal and provided invaluable guidance to us through the process.”
I am delighted that we have secured a new loan facility an that our three existing funders continue to support the business during this challenging period, demonstrating their confidence in Morses Club and our growth and digital diversification strategy.
“This new partnership is a very exciting opportunity for Tempcover to both consolidate its existing position and provide a platform for further growth into new verticals and markets. Many thanks to Ben and the Cavendish team who provided invaluable advice throughout the process and helped us achieve this great outcome for the Company”.
“This is an exciting deal for our business. Baird Capital’s experience and resources will be invaluable as we seek to further enhance our services and global reach. Baird’s deep understanding of the financial services industry and its global network will be valuable as we look to drive our growth both domestically and abroad. Our improved capabilities will also help us better serve our institutional clients who now, more than ever, need excellent advice to help them in their search for yield and to protect their portfolios in today’s highly volatile markets.
We are building bfinance’s next phase of growth on very strong foundations, with our client base of blue-chip institutions and clearly differentiated advisory services winning an increasing number of adherents globally. When looking for an advisor we wanted someone with an international network and experience of working with Private Equity firms. Cavendish had the expertise to facilitate the transaction and the support they provided was invaluable.”
“We are very pleased to be joining forces with Fidante Partners which is a highly successful multi-boutique fund manager in the world’s fourth largest pension market, Australia. We believe that bringing the capability of Fidante Partners to Dexion Capital is very attractive to both investors and managers. For investors, it provides access to a range of managers who have the same high standards of reporting, governance, transparency and fair fees via our combined platform. For managers, it builds on Dexion Capital’s existing distribution strengths by adding Fidante’s capability in Australia. Alternatives are the fastest-growing investment sector and will comprise 15% of global assets under management and 40% of revenues by 20201. Moreover, boutique managers punch above their weight in alternatives.”
The Cavendish Team have been instrumental in delivering me a buyer which is a perfect fit for my business. This is a wonderful milestone in our history and I am delighted.
Cavendish were without doubt the best choice of advisors for JBW and me personally. Together with their Japanese partners, they brought huge value to the process.
Recent Deals for Financial Services Sector
Sentenial Group & Nuapay
K3 Capital Group plc
Debt Advisory | plc
David Rubin & Partners
Begbies Traynor Group
Morses Club plc
Debt Advisory | plc