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GTCR acquires Premium Credit

Private equity firm GTCR has acquired Premium Credit from MBNA Europe, a subsidiary of Bank of America.

Premium Credit is a provider of payment facilitation and financing services in the UK and Ireland.

GTCR is partnering with new chief executive Andrew Doman and existing management of Premium Credit to recapitalise the company and further invest in the company’s technology and services offerings going forward. Total asset value was approximately GBP900m (USD1,450m).

Founded in 1988, Premium Credit works in partnership with a diverse network of insurance brokers and carriers to enable businesses and individuals to pay insurance premiums in instalments rather than a single annual payment. The company also provides payment facilitation and financing services for professional fees, school fees, membership subscriptions and other commercial services. Across its business lines, Premium Credit participates in processing and funding more than 22 million transactions annually associated with approximately GBP3bn in payment volume for approximately two million customers.

“We are thrilled to complete the acquisition of Premium Credit Limited. Our extensive experience in insurance services, payment processing, and specialty finance provides GTCR with a unique perspective on the Company and its opportunities going forward,” says Collin Roche, managing director at GTCR. “We look forward to supporting Andrew Doman and the management team’s efforts to drive product expansion and continued technology investment in Premium Credit’s operations and service delivery. We will also selectively evaluate building on the company’s success through acquisitions as well as geographic expansion opportunities in Europe and North America.”

“GTCR’s investment is a strong endorsement of the attractive business built by Premium Credit’s management and employees over many years,” says Doman. “Premium Credit has strong customer relationships and a tremendous quality of service orientation. I am excited to join such a talented team and look forward to growing the franchise.”

Barclays Capital, Lloyds Banking Group, Deutsche Bank, HSBC and Société Générale have committed to a long-term financing facility to support Premium Credit’s existing funding obligations and future growth.
 

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