LDC backs motor finance specialist Evolution Funding
A motor finance specialist based in Chesterfield has secured the backing of mid-market private equity firm LDC in a move that values the business at £110m.
Evolution Funding‘s Evolve technology is used in car dealerships and online during the process of purchasing used vehicles. It brokers motor finance from a panel of 34 funders [See website here ].
In 2018, the 200-strong business brokered loan advanced in excess of £430m.
As part of the deal, LDC has taken a significant minority stake in Evolution, which has also been backed by acquisition finance facilities from Santander and Aviva Investors.
It will continue to be led by co-founders Jeremy Levine and Lee Streets along with sales director Chris Coverdale. A new finance director, Kevin Kaye, has also joined.
Following the investment, Evolution is planning to invest further in its technology.
Streets said: “This is a big moment for the business. We’ve spent the last 15 years listening to customers and developing the best technology in the market for vehicle finance. Bringing a partner on board like LDC gives us not only the capital to accelerate our growth, but also the boardroom expertise to help us unlock the potential of our business.
“LDC understood our vision for the business from the off and shared the same ambition. This is a great outcome for our partners, customers and employees alike, and we’re hugely excited about our plans for growth.”
CloudOrigin CEO and Founder, Richard Hall, led the Vendor Technology and Operational Due Diligence process for Evolution: “This is a technology powered business who has achieved scale and efficiency in a very competitive sector through their highly configurable Evolve platform serving dealers in forecourts and their online websites with a very rapid turnaround on loan recommendations and approvals. All within a fair and audited workflow system which always ensures the best deal for the purchaser and the dealer while facilitating processing by the finance provider. Fantastic to work with a business making such great use of their technology investments to drive growth.”
Lawrence Dean, Andy Lyndon and Alistair Pendleton led the investment for LDC with support from Dan Gluckman. Lyndon and Dean will join Evolution‘s board along with former uSwitch chief executive Steve Weller, who has been appointed chairman. Tim Porter, former managing director of Lex Autolease, is non-executive director.
Dean added: “Evolution Funding is a classic example of an entrepreneurial business that is disrupting a market with innovative technology to the benefit of its customers. Lee, Jeremy and the team have been forward-thinking, consistently growing the business since its inception, with a clear commitment to customer service and compliance.
“There’s a significant opportunity to scale further in the UK, working with new partners, and by investing in its market-leading Evolve platform and digital capabilities as well as its customer-facing product, MyCarCredit, which has significant potential.”
LDC was advised by Gowling WLG, EY and CIL. Evolution Funding was advised by KPMG Corporate Finance in the Midlands (Khush Purewal, Si Heath, Taj Lalli), CloudOrigin, Mishcon de Reya and BDO. Santander and Aviva were advised by DLA