Private equity firms are eyeing a potential carve-out or full acquisition of UK-based consumer credit provider NewDay Group, with bids reportedly being prepared by a Bain Capital-led consortium, as well as global investment heavyweights KKR and Pimco, according to a report by Sky News.
The firm – which is currently owned by private equity backers Cinven and CVC Capital Partners – is understood to be valued at around £1.7bn ($2.26bn), making it one of the more sizeable UK financial services assets in play this year.
While Bain Capital is said to be exploring a full takeover, Pimco’s interest is focused on NewDay’s consumer loan book – highlighting the growing appeal of specialist credit portfolios among private market investors looking for yield and scale in non-bank lending platforms.
KKR is also reportedly weighing a bid, potentially positioning itself for another strategic acquisition in the European consumer finance sector.
The potential exit by Cinven and CVC comes as private equity owners look to crystallise value in portfolio companies amid improved conditions for dealmaking and growing appetite for consumer credit assets. Cinven and CVC acquired NewDay in 2017 and have since expanded its reach through organic growth and bolt-on deals, including the recent £720m purchase of the Argos Financial Services card portfolio from Sainsbury’s.
