The face area of customer finance is changing

The face area of customer finance is changing

Our M&A forecast

High amounts of M&A activity as founded banks, economic sponsors and trade consolidators vie for market share amidst growing market need. If “no-deal” Brexit replays the market meltdown, specialty finance can be an increasingly essential way to obtain working and development funding for SMEs.

Charge cards / customer credit — Publicly reported discounts & circumstances

Healthier customer appetite

Deal highlight

White & Case encouraged one of many bidders for Israel’s biggest bank card business, Leumi Card, finally obtained by Warburg Pincus.

Deal highlight

White & Case suggested SIA, A european frontrunner in the re re payments infrastructure area, on its €375 million purchase of First information Slovakia and First information Hellas Processing solutions

Trade consolidators:

  • Los angeles Banque Postale: Acquisition of 35% of Los angeles Banque Postale Financement
  • Agos Ducato: Acquisition of Profamily
  • http://titlemax.us/payday-loans-ri/pawtuckett

  • BGL: Acquisition of Saverd
  • SIA: Acquisition of First information Corp’s CEE card processing organizations
  • Zmarta Group: Takeover offer for Insplanet

Strategic investors:

  • Bankinter: Acquisition of AvantCard
  • Warburg Pincus: Acquisition of Leumi Card *

brand brand New fintech entrants

  • Chetwood Financial: Liveland load that is dynamic with Clearscore
  • Marqeta: Payment cards and processing JV with Visa
  • Klarna: publish of re re re payment card

Increasing risks that are operational

Litigation danger:

  • Future Finance: re re re Payment of €2 million settlement to clients for British credit Act breaches
  • Visa and MasterCard British Court of Appeal’s landmark judgment in preference of a team of Uk stores associated with illegal swipe cost levels

Regulator intervention:

  • PayPal-iZettle: Phase 2 overview of PayPal’s purchase of iZettle by British CMA
  • Visa and Mastercard: Offer of limit on interchange costs charged on tourists’ card re payments as a result to European Commission probe

Wider market influence—new regulatory burdens

  • Norwegian Financial Services Authority: Proposal for stricter mandatory credit assessment guidelines for offer of customer loans and bank cards in Norway
  • British Payment techniques Regulator: establish of wide-ranging investigation into restricted competition inside the UK’s card industry, with a give attention to card-acquiring solutions

Payday lenders / High-cost credit—Publicly reported discounts & circumstances

Bullish PE support

  • Wonga: ВЈ10 million rescue by Accel Partners and Balderton Capital, in front of collapse into management

Increased running dangers

  • British FCA: Order on payday lenders to carry forward client compensation for mis-sold loans, notwithstanding insolvency issues
  • CashEuroNet UK: Customer complaints increased by >200% in H1
  • QuickQuid: client complaints increased threefold in H1

Specialty finance/ market lending—Publicly reported discounts & circumstances

Growing buyer/ investor/ partner interest

Personal equity/venture money:

  • Zopa: effective ВЈ60 million financing round (led by Augmentum, Northzone and Bessemer) and ВЈ44 million financing round (led by Wadhawan capital that is global
  • Divido: effective US$15 million show a money round, led by Dawn Capital and DN Capital
  • Lendspend: effective US$40 million money round, led by Atomico and GP Bullhound
  • KKR: Dutch and German SME lending JV with NEOS and Schroders
  • Ares: Raise of €6.5 billion European direct financing investment

Governments:

  • UK British company Bank: ВЈ150 million of money for Funding Circle

Management:

  • Crowdhouse: Partial MBO
  • Liberbank: Spanish business involvement JV with October
  • BAWAG: Acquisition of BFL Leasing
  • Bank of New Mellon: Investment of ВЈ300 million into ThinCats
  • PoЕЎtovГЎ banka: Acquisition of Amico Finance

Trade consolidators:

  • abcfinance: Acquisition of G.R. Factoring
  • EC Financial Services: Acquisition of JET Cash
  • City of London Group: Acquisition of Acorn to Oaks
  • White Oaks: Acquisition of LDF
  • Paragon Banking Group: Acquisition of Titlestone Property Finance

Vertical integration

  • Waterfall Asset Management: SME loan capital JV with Funding Circle
  • Anaxago: Release of Anaxago Capital

Market inflexion point

Deal highlight

White & Case suggested Amigo Holding PLC, the leading business in the united kingdom guarantor loan room, on its ВЈ1.3 billion IPO regarding the London stock market

  • Fellow Finance: Nasdaq First North IPO at €55 million valuation
  • Funding Circle: LSE Main Market IPO at ВЈ1.504 billion valuation
  • Amigo: LSE principal IPO at ВЈ1.504 market valuation

Expanding perspectives:

Zopa: effective grant for British banking licence

Regulators retract their sleeves

  • ECB: Proposal for stricter scrutiny of investment funds as well as other businesses over the EU’s shadow-banking industry

Supply: *Non-EU deal. Included for example of feasible future trends that are european

This book is given to your convenience and will not represent advice that is legal. This book is protected by copyright. White & Case LLP

Comments are closed.