Palatine backs MBO of debt manager MoneyPlus
DEBT management firm MoneyPlus Group (MPG) has been sold to a management team backed by Manchester-based Palatine Private Equity for an undisclosed sum.
The Altrincham-based group trades under a number of subsidiaries including debt management company Chiltern, IVA arranger The Debt People and loan broker Hamilton Locke.
It employs around 130 people and the last filed accounts for the year to October 321, 2009, show a pre-tax profit of £917,000 on sales of £4.4m. It is understood to be the seventh-largest provider of debt management plans in the UK.
Palatine Private Equity has taken a majority stake in the business, which will continue to be run by a four-strong management team led by CEO Chris Davis.
Palatine partner Beth Houghton said that the various businesses would be brought together under the MoneyPlus brand while other service lines such as insurance, legal and PPI cover will be added to the group’s offer.
Houghton, who will now join the MPG board, added that increased regulation by the Office of Fair Trading into the debt management sector provided consolidation opportunities, as it was “one of the most compliant in the sector” with better systems than others in the industry. MPG is a founder member of the Debt Managers’ Standards Association (DEMSA).
Chris Davis, CEO of MoneyPlus Group, said: “We are delighted to have teamed up with Palatine in order to complete this buyout. We are convinced that working with Palatine will enable us to continue our growth and ultimately achieve our aim of establishing Moneyplus Group as a leading provider of financial advice.”
The deal is the seventh acquisition to have been made from Palatine’s maiden £100m fund which closed in 2007. It has already achieved a couple of successful exits, and Houghton expects that Palatine will make “two or three more investments” prior beginning a fundraising for Palatine’s second fund later this year.
The management team were advised on the deal by accountants Grant Thornton and law firm DWF, while Palatine was by Gateley. KMPG carried out due diligence.
Grant Thornton’s Andrew Stubbs said: “We wish Chris and his team every success with this new chapter for the business. MoneyPlus already has a superb reputation within the industry, trusted for providing excellent advice and service to its customers with the highest ethical standards.”
