Värde Partners Sells NewDay; Private Equity Firms Cinven and CVC Capital Partners to Acquire Leading Provider of Consumer Credit in the U.K.
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.
Värde Partners Announces New Chief Investment Officers
MINNEAPOLIS – Värde Partners, the $11 billion global alternative investment firm, today announced the appointment of Ilfryn Carstairs and Jeremy Hedberg to the roles of joint Chief Investment Officers along with current CIO George Hicks, who is also the firm’s CEO. The move reflects another milestone in Värde’s long-term succession plan to support the firm’s continued growth.
Mr. Carstairs and Mr. Hedberg, both Partners in the firm, will assume their new roles effective January 1, 2017. On January 1, 2018, Mr. Hedberg and Mr. Carstairs will remain Co-CIOs, and Mr. Hicks will focus solely on being the CEO of the global organization. Marcia Page will remain Executive Chair of the firm.
“Jeremy and Ilfryn have had distinctive and long careers with Värde Partners, and I’m excited for them to expand their roles as two of the firm’s leaders,” said George Hicks, current CEO and CIO of Värde Partners. “They both have played key roles in our investment strategies across time and geographies – with Ilfryn based in Europe and Jeremy based in the United States. The deep relationship that they have built over the years will serve them especially well in these new roles.”
“Marcia Page and George Hicks have built a strong, global platform for our investors. I’m excited and honored to have the opportunity to build upon the legacy of their success and to continue working closely with Jeremy through that process,” said Ilfryn Carstairs
“I’ve had the pleasure of working with George Hicks and Marcia Page for the majority of the firm’s history,” said Jeremy Hedberg. “I’m looking forward to working with Ilfryn and our other senior leaders to chart the future course for Värde and our global investing platform.”
Jeremy Hedberg joined Värde in 1997 and was named Partner in 2003, while Ilfryn Carstairs joined Värde in 2006 and was named Partner in 2011. They have been long term members of Värde’s Investment Committee and most recently served as Global Co-Heads of Corporate and Traded Credit for the firm. In addition to these responsibilities, each has played key roles at Värde through numerous investment cycles and across geographies.
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, transportation, infrastructure and logistics. 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.
Värde Partners and Banco Popular Partner to Purchase Barclays’ Barclaycard Business in Spain and Portugal
MADRID – Värde Partners, a leading investment firm, and Banco Popular, a leading Spanish bank, have partnered to purchase Barclays’ Barclaycard business in Spain and Portugal. The business will be acquired by bancopopular-e, a business that is jointly owned by Värde Partners and Banco Popular, and will accelerate bancopopular-e’s growth strategy in Spain and its expansion into Portugal.
“We are excited by the opportunity this transaction provides for bancopopular-e’s business both in Spain, where they are a key credit card issuer, and also in Portugal, where this transaction extends the bancopopular-e business across all of Iberia,” said Elena Lieskovska, Managing Director at Värde Partners. “Specialized lenders like Bancopopular-e, who are deploying innovative customer strategies, have a real opportunity to provide critical consumer services in the marketplace.”
bancopopular-e is an online bank specializing in credit cards that provides credit and savings solutions to over 2.5 million customers. Its team of over 700 professionals currently manages €1,800 million in client card balances and more than €2,200 million in customer deposits.
This transaction is a unique fit for bancopopular-e as both the Barclaycard business in Portugal and bancopopular-e itself have historical roots in Citibank’s Iberian credit card business. Banco Popular acquired Citibank’s Spanish credit card business in 2014 and contributed it to bancopopular-e while Barclaycard acquired Citibank’s Portuguese credit card business in September 2009. This shared lineage, as well as the presence of many former Citibank employees on the current management team of bancopopular-e, are expected alleviate integration and transition challenges.
The transaction is subject to customary regulatory approvals, which are expected to be completed by the end of 2016.
About Värde Partners:
Värde Partners is a $10 billion global alternative investment firm that employs a credit-oriented, value-based approach to investing across a broad array of geographies, segments and asset types, including real estate, corporate credit, residential mortgages, specialty finance, transportation and infrastructure. The Firm 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. Now in its third decade, Värde employs 220 people with main offices in Minneapolis, London and Singapore.
Värde Partners Sells Festival Park, Mallorca
LONDON – Värde Partners agreed to the sale of Festival Park, Mallorca’s premier outlet centre, to the VIA Outlets, a joint venture between Hammerson, APG, Meyer Bergman and Value Retail. Total consideration was in excess of €100 million. Värde acquired the asset as part of a portfolio in December 2011 through a sales process run by APN European Retail Management Group and its lender.
Post-acquisition, Värde undertook a capital expenditure program to re-configure the centre and support a revised letting strategy, appointing outlet specialist Value Retail as operating partner in the project. As a result, the 32,000 square meter centre attracted over 4 million visitors last year and has secured lettings to major retail brands including Nike, Reebok, Calvin Klein, Desigual, Tommy Hilfiger and Lacoste. The centre is also home to Mallorca’s largest cinema multiplex with a strong family leisure and restaurant offering.
“The Spanish real estate market has improved significantly from when we acquired the asset in 2011, at the depth of the crisis,” said Tim Mooney, Partner and Co-Head of Global Real Estate at Värde. “This improvement is reflected in the operating performance of Festival Park as well as investor appetite for Spanish real estate assets. We successfully repositioned this centre by combining our resources and expertise with that of Value Retail. We are delighted that Value Retail, through its VR Retail Advisors division, will continue to be involved in operating the asset under the new ownership structure, ensuring continuity for our tenants.”
About Värde Partners:
Värde Partners is a $10 billion global alternative investment firm that invests across a broad array of geographies, segments and asset types, including real estate, corporate credit, residential mortgages, specialty finance, transportation and infrastructure. The Firm 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. Now in its third decade, Värde employs 200 people with main offices in Minneapolis, London and Singapore.
Masthaven and Värde Partners Announce the Completion of Värde’s £60 Million Investment in UK Specialist Bank Masthaven
LONDON – Masthaven, the UK specialist bank, and Värde Partners, a leading global alternative investment firm, today announced the completion of the strategic £60 million equity investment by Värde Partners in Masthaven, having previously announced the agreement in September 2018. The completion of the investment will enable the bank to deliver against its strategic ambition to become one of the leading specialist banks in UK residential and SME markets.
The £60 million equity investment from Värde Partners, along with the bank’s existing capital base, will enable Masthaven to significantly increase lending to consumers and SMEs over the next 3 to 5 years as well as provide innovative deposit solutions to Masthaven’s customers.
By serving borrowers without access to the traditional high street banking brands, Masthaven has become a force in the UK challenger banking market. Masthaven has demonstrated significant growth in its market niches – namely retail savings, SME lending, short- and long-term property financing across commercial, buy-to-let and specialist residential real estate. Masthaven has also been recognised as the 2018 Most Innovative Digital Retail Bank UK by CFI.
Värde Partners manages $14 billion in assets and has more than 20 years of experience investing in consumer and commercial credit in the financial services sector.
Andrew Bloom, Masthaven’s founder and CEO, said: “Masthaven has made tremendous strides in the past few years. We have successfully launched specialist residential and buy-to-let mortgages plus bolstered our savings suite by entering the SME savings market, all while growing our team to above 170 people and with a balance sheet in excess of £750 million. Now it’s time for us to further enhance our propositions for both our existing customers and intermediary partners as well as our future clients. Masthaven will deploy the Värde Partners investment to bring more capacity to the UK market and enable us to innovate in terms of both our savings and lending propositions.”
Elena Lieskovska, Partner and Head of European Financial Services at Värde Partners, said: “Masthaven is a rising brand in the UK challenger bank scene and we’re thrilled about the opportunity to work together to enhance the bank’s proposition and to take it to the next level. At Värde, we are active in our portfolio companies, favouring the partnership approach to creating value, and that’s exactly how we expect to work with the Masthaven team.”
Michael Baker, Managing Director Joint Ventures at The William Pears Group, Pears being an investor in Masthaven, said: “We’ve backed Masthaven Finance since 2011 together with the launch of Masthaven Bank in 2016 and are pleased to welcome Värde Partners as a new investor and look forward to them being part of the next phase in Masthaven’s journey.”
Notes to editors
Masthaven was advised by Houlihan Lokey and PJT Partners, the corporate finance firms and Linklaters and Mishcon de Reya as lawyers. Värde Partners was advised by Slaughter and May.
About Masthaven Bank Ltd
Masthaven launched as a retail bank in 2016. It offers award-winning saving and lending products. Prior to that, Masthaven Finance has provided a flexible and personalised approach to bridging loans and secured lending since 2004. Today, the bank’s knowledgeable and experienced specialists are committed to providing customers with flexible and fixed term savings accounts, bridging loans, development finance, and mortgages. In 2017 it was named Most Innovative Savings Provider in the Moneynet Personal Finance Awards; and Best Bridging Lender in the Coreco Awards. Masthaven Finance featured in 2015’s The Sunday Times’ Virgin Fast Track 100 (at number 81). The bank ranked 240 in Financial Times’ FT1000 list published in 2017. The bank is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (register no. 719354).
About Värde Partners
Värde Partners is a $14 billion global alternative investment firm that employs a value-based approach to investing across a broad array of geographies, segments and asset types, including financial services, corporate credit, real estate, mortgages, energy, real assets and infrastructure. The firm 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. Now in its third decade, Värde employs more than 300 people globally with regional headquarters in Minneapolis, London and Singapore.
Värde Partners Announces New London Office to Support European Growth
LONDON – Värde Partners, a leading global alternative investment firm, is pleased to announce the relocation of the firm’s London office to support its continued growth in the region. Värde’s new European regional headquarters is located at 2 St James’s Market, part of an award-winning, newly redesigned and redeveloped office and retail complex in the West End.
Since opening its office in London in 2004, Värde’s presence in Europe has grown to more than 80 full-time employees across six regional offices including Athens, Dublin, Madrid, Milan and Luxembourg.
About Värde Partners
Värde Partners is a $14 billion global alternative investment firm that employs a value-based approach to investing across a broad array of geographies, segments and asset types, including corporate and traded credit, real estate, mortgages, financial services, real assets and infrastructure. The firm 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. Now in its third decade, Värde employs more than 300 people globally with regional headquarters in Minneapolis, London and Singapore.