The facial skin of customer finance is evolving

The facial skin of customer finance is evolving

Our M&A forecast

High amounts of M&A activity as founded banks, monetary sponsors and trade consolidators vie for market share amidst growing market need. If “no-deal” Brexit replays the market meltdown, specialty finance will end up a source that is increasingly important of and growth funding for SMEs.

Charge cards / customer credit — Publicly reported discounts & circumstances

Healthier customer appetite

Deal highlight

White & Case encouraged one of several bidders for Israel’s largest charge card company, Leumi Card, fundamentally obtained by Warburg Pincus.

Deal highlight

White & Case suggested SIA, A european frontrunner in the re payments infrastructure room, 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
  • 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 *

brand New fintech entrants

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

Increasing risks that are operational

Litigation risk:

  • Future Finance: re Payment of €2 million payment to customers for British credit Act breaches
  • Visa and MasterCard British Court of Appeal’s landmark judgment in preference of a small grouping of Uk stores associated with swipe that is unlawful amounts

Regulator intervention:

  • PayPal-iZettle: Phase 2 report on PayPal’s purchase of iZettle by British CMA
  • Visa and Mastercard: Offer of limit on interchange charges charged on tourists’ card 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: release of wide-ranging research 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

Increased risks that are operating

  • British FCA: Order on payday lenders to create customer that is forward 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 & situations

Growing buyer/ investor/ partner interest

Private equity/venture capital:

  • Zopa: effective ВЈ60 million capital 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 money round, led by Dawn Capital and DN Capital
  • Lendspend: Successful US$40 million financing 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 lending investment

Governments:

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

Management:

  • Crowdhouse: Partial MBO
  • Liberbank: Spanish business involvement JV with October
  • BAWAG: Acquisition of BFL Leasing
  • Bank of the latest 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 financing JV with Funding Circle
  • Anaxago: Release 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 as well as other organizations over the EU’s shadow-banking industry

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

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