Värde Partners Sells NewDay; Private Equity Firms Cinven and CVC Capital Partners to Acquire Leading Provider of Consumer Credit in the U.K.

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October 11, 2016

LONDON – Värde Partners, the $11 billion global alternative investment firm, today announced 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 for an undisclosed consideration.  The sale, which is subject to regulatory and anti-trust approval, is expected to be completed in early 2017. 

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.  Today, NewDay is one of the fastest growing specialty finance companies in the U.K. with more than 5 million customers and £1.6 billion of receivables. 

“We are pleased to have played a part in NewDay’s transformation,” said Elena Lieskovska, Managing Director and European Head of Värde’s Specialty Finance business. “NewDay has grown to become an important financial partner for many in the U.K., and I’m confident the unique partnership of Cinven and CVC Capital Partners will allow it to continue to thrive and deliver the best possible service to its customers and partners.”

“This transaction marks another milestone for our business,” said Rick Noel, Partner and Global Head of Värde’s Specialty Finance business. “Increased regulation continues to reshape the banking industry and drive deleveraging.  Since our acquisition of NewDay in 2011, we have acquired and grown multiple consumer finance businesses as banks around the globe refocus their balance sheets and reduce lending.  We believe this trend will continue to play out over multiple years. Firms like NewDay with strong market knowledge and underwriting capabilities will continue to find growth opportunities on the back of bank retrenchment.”

Värde has 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. 

“There are significant opportunities for specialised lenders like NewDay in the U.K. market with a strong customer and partnership focus.  Värde brought extensive experience in consumer finance and financial services to NewDay, invested in next generation IT infrastructure and created value through both organic growth and acquisitions, increasing receivables from £600 million to £1.6 billion.” said James Corcoran, Chief Executive Officer of NewDay.

Advisors to Värde on the transaction included: Lazard, UBS, Slaughter & May and Ernst and Young.

About Värde Partners:
Värde Partners is an $11 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.

About NewDay:
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.

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Värde’s investor base includes global institutional investors including trusts, endowments, foundations, pension funds, corporations, and funds-of-funds.