Enterprise Finance has acquired bridging lender West One Loans in a transaction funded by a combination of cash and equity.
Enterprise Finance is a specialist distributor focused on secured loans, bridging finance and commercial mortgages. It is backed by ISIS Equity Partners, which currently has GBP1.2bn of funds under management.
The two businesses, which are based in Borehamwood, Hertfordshire, are to be integrated in the near future with both companies moving to a new, larger headquarters in the local area.
The existing Enterprise Finance board, chaired by former wealth manager David Campbell and led by CEO Danny Waters, will welcome West One Loans directors Duncan Kreeger and Stephen Wasserman. West One Loans director David Kreeger will also remain with the business.
Following the sale of his shares, Mark Abrahams will be leaving to pursue other business interests. He remains an investor in bridging loan opportunities generated by West One Loans, as he has been since the outset.
Waters says: “We have known the West One Loans team for a long time. Over the past six years, we have watched the business grow from a concept to what it is today – an established, financially robust and proven bridging lender with over GBP100m of loans under management. We feel, through this acquisition, we can help West One Loans realise its considerable potential far sooner. Also, with Stephen and Duncan joining the board, we will be adding strength and depth to our own senior management team and I look forward to working with them to take the business forward. From now on, our strategy as a group will be focused on both organic and buy-to-build growth, with this the first of a number of planned acquisitions.”
Emily Gestetner, chief financial officer of Enterprise Finance, says: “This is an unconventional deal in that the market is more used to lenders acquiring distributors. However, there are numerous synergies between the two companies that we are keen to capitalise on in order to grow the group as a whole. The unique West One Loans investor model will also allow us to diversify our own funding model, which could prove very valuable in the long term. Alongside West One Loans’ different and complementary distribution channels, this makes for a very compelling proposition that will considerably strengthen our financial position.”
