Cinven and CVC Capital Partners today announce that funds advised by Cinven and CVC Capital Partners have completed the acquisition of NewDay, a leading UK consumer finance provider specialising in the near-prime and co-brands sectors of the UK credit card market, from Värde Partners.
NewDay provides credit to approximately 5.6 million customers with over £1.6 billion of receivables. It operates in two business segments: Near-Prime, which provides aqua and marbles branded credit cards to customers who typically encounter difficulties accessing products such as credit cards from mainstream credit providers but whose credit profiles are superior to sub-prime borrowers; and Co-brand, which provides credit cards and store cards in partnership with established retailers.
Cinven and CVC Capital Partners identified NewDay as an attractive investment opportunity based on its market position in the largest credit card market in Europe. NewDay has strong underwriting capabilities, with its credit risk management systems using proprietary analytics.
NewDay has generated strong growth over the past five years, and is well positioned for further growth given ongoing consumer demand for its products, strong brand recognition and distribution channels, as well as the launch of additional innovative credit products.