International private equity firm Cinven today announces that it has agreed to sell Premium Credit (‘the Company’), an industry leading provider of instalment finance solutions. Financial details of the transaction are not disclosed.
Premium Credit is a leading provider of premium finance for commercial and retail insurance products, as well as other specialist lending solutions. It provides financing for the payment of insurance premiums, school fees, tax financing, membership fees and season tickets to retail and small and medium-sized enterprise (‘SME’) and larger corporate customers. The Company’s best-in-class IT platform enables businesses and individuals to spread the cost of insurance premiums and other repeat payments over time. Headquartered in the UK with approximately 400 employees, Premium Credit operates through a network of more than 3,000 partners to serve more than 2.1 million customers.
Cinven has a strong track record of investing in the European Financial Services sector in segments including life insurance, through Guardian Financial Services and Viridium; non-life insurance, through Compre; specialty financial services, through Just Group (formerly Partnership Assurance); consumer finance, through NewDay; specialist broking, through Miller Insurance Services; and, most recently, wealth management, through True Potential.
Having identified Premium Credit as an attractive investment opportunity in the Financial Services sector, the business was acquired by the Fifth Cinven Fund in February 2015. Cinven has worked in close partnership with the Company’s leading management team to achieve strong performance during its ownership, including:
- Significant investment in digital and the development of Premium Credit’s technology infrastructure to create a modern, flexible and scalable platform to drive the expansion of Premium Credit’s client service proposition and support new client wins;
- Leveraging data and analytics to improve client insights across its existing partners;
- The roll-out of new products that are adjacent to Premium Credit’s existing insurance premium finance offering, including school fees and tax financing, building on Premium Credit’s core capabilities;
- Implementing commercial and operational best practices to support sustainable through-the-cycle growth;
- Diversifying Premium Credit’s funding strategy into public Asset-Backed Security (‘ABS’) markets, in turn increasing Premium Credit’s cash conversion; and
- Investing in a leading senior management team with expertise across the sector, creating a strong culture with high engagement across the organisation.
Commenting on the investment, Maxim Crewe, Partner at Cinven, said:
“Premium Credit has made great progress during Cinven’s ownership period. The business exemplifies Cinven’s strategy of identifying and investing in differentiated companies in the European Financial Services sector, and supporting them to drive growth over the long term. We wish the business, Tara and the team great success in the future.”
Rebecca Abrey, Principal at Cinven, said:
“Under Cinven's ownership, Premium Credit has benefited from significant investment in its digital capabilities and technology infrastructure, strengthening its client service proposition and leaving the business well positioned to continue to succeed in the future.”
Tara Waite, CEO of Premium Credit, added:
“Cinven’s support has allowed Premium Credit to deliver a once-in-a-generation upgrade in the technology platform that sits at the heart of our payments solutions business. As a consequence, the business has increased significantly its market leading position, through a truly differentiated, tech- enabled proposition for customers and partners. We are enthusiastic about the next chapter of our growth journey.”
Completion of the transaction is expected in the second half of 2022 and is subject to customary regulatory and antitrust approvals.