The facial skin of customer finance is changing
fefprint10Our 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 crucial way to obtain working and growth funding for SMEs.
Bank cards / customer credit — Publicly reported discounts & circumstances
Healthier customer appetite
Deal highlight
White & Case suggested one of many bidders for Israel’s biggest bank card company, Leumi Card, eventually obtained by Warburg Pincus.
Deal highlight
White & Case recommended SIA, a leader that is european the re re payments infrastructure area, on its €375 million purchase of First Data 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
- BGL: Acquisition of Saverd
- SIA: Acquisition of First information Corp’s CEE card processing companies
- Zmarta Group: Takeover offer for Insplanet
Strategic investors:
- Bankinter: Acquisition of AvantCard
- Warburg Pincus: Acquisition of Leumi Card *
New fintech entrants
- Chetwood Financial: Liveland dynamic load JV with Clearscore
- Marqeta: Payment cards and processing JV with Visa
- Klarna: publish of re re re re payment card
Increasing risks that are operational
Litigation danger:
- Future Finance: re Payment of €2 million settlement to clients for British credit rating Act breaches
- Visa and MasterCard British Court of Appeal’s landmark judgment in preference of a team of Uk merchants associated with illegal swipe charge amounts
Regulator intervention:
- PayPal-iZettle: Phase 2 writeup on PayPal’s purchase of iZettle by British CMA
- Visa and Mastercard: Offer of limit on interchange costs charged on tourists’ card re re re payments in reaction 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 research into restricted competition inside the card that is UK’s, 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 administration
Increased operating dangers
- British FCA: Order on payday lenders to carry forward consumer compensation for mis-sold loans, notwithstanding insolvency issues
- CashEuroNet UK: Customer complaints increased by >200% in H1
- QuickQuid: Consumer complaints increased threefold in H1
Specialty finance/ market lending—Publicly reported discounts & circumstances
Growing buyer/ investor/ partner payday loans for bad credit Somerset interest
Personal equity/venture money:
- Zopa: Successful ВЈ60 million money round (led by Augmentum, Northzone and Bessemer) and ВЈ44 million capital round (led by Wadhawan capital that is global
- Divido: effective US$15 million show a financing round, led by Capital and DN Capital dawn
- Lendspend: effective US$40 million capital 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 capital for Funding Circle
Management:
- Crowdhouse: Partial MBO
- Liberbank: Spanish business involvement JV with October
- BAWAG: Acquisition of BFL Leasing
- Bank of brand 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 resource Management: SME loan financing JV with Funding Circle
- Anaxago: Publish of Anaxago Capital
Market inflexion point
Deal highlight
White & Case recommended Amigo Holding PLC, the company that is leading great britain guarantor loan room, on its ВЈ1.3 billion IPO in 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 along with other organizations throughout the EU’s shadow-banking industry
Supply: *Non-EU deal. Included for example of feasible future European styles
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