Maiden deal for debt fund fuels lender’s growth
A fast-growing Blackpool lender has raised £10m in funding deal with a new player in the debt capital market.
1st Stop Group, which provides car finace, personal and home loans to consumers, has secured the finance from
Toscafund Asset Management’s recently-launched Manchester-based Tosca Debt Capital team.
The maiden investment from the fund will unlock strategic growth opportunities for 1st Stop in each of its markets.
Tosca Debt Capital provides debt capital to regional SMEs to facilitate buy-outs and acquisitions, capital raising and refinancing/enhancement of existing facilities.
Richard Williams, partner at Toscafund, said: “We’re delighted to have completed our first deal to support such an ambitious regional corporate. 1st Stop Group has a determined and experienced management team who have helped it establish a niche position.
“We saw great potential in the business from day one and our support along with the UK’s positive economic outlook will help 1st Stop Group capitalise on the UK’s increasing appetite for personal finance and loans.”
Alex Mollart, chief executive of 1st Stop Group, added: “Toscafund shares our vision for the future and has demonstrated its confidence in our potential by investing £10m into the business. The second lien facility will further support the group’s current debt suppliers and allow us to take a significant step forward with our growth plans.
“Being the first business to receive investment from Toscafund is a notable achievement and given the practical and pragmatic approach that we’ve received from the team, we’re sure that many more firms will reap the same benefits.”
Corporate finance advice was provided by Deloitte, legal advice from DLA Piper and Brabners and financial due diligence by Grant Thornton.
The debt fund was launched in September 2015 by Toscafund and offers flexible, secured debt capital to the regional SME market. Its Manchester office is on Cross Street and its team also includes former EY partner Gary Davison.
