Investor seals first NW deal with online loans firm swoop

AN ONLINE broker of secured loans is set for major growth after striking a multi-million pound investment deal with new private equity firm Beech Tree.

The investment, understood to be worth more than £15m,  by Beech Tree Private Equity into Bolton-based Fluent Money Group, is the firm’s first deal in the North West since its launch by Andy Marsh and Paul Franks, who previously led Gresham Private Equity’s Manchester and Birmingham offices respectively.

Fluent Money, based on Chorley New Road, Horwich, is a leading broker of second secured loans – which are typically used by homeowners with equity in their properties – as an alternative to remortgaging. The company works with mortgage brokers and intermediaries like MoneySupermarket.com to find their clients the best product.

Fluent, has more than 100 staff and was launched by a number of former bank managers, led by chief executive Kevin Hindley, in 2008.  It has seen strong growth in the last few years on the back of heavy investment in its platform. It was also the first broker in the second secured loans market to be granted full FCA permission.

Beech Tree will invest in new products and will also look at selective acquisitions.

All the founding directors are remaining with the business, while the senior team has been bolstered by the appointment of experienced financial services executive Mark Huggins, who has invested alongside Beech Tree.

Huggins a former managing director of financial services at Acromas Holdings, parent company for Saga and the AA, will help drive a number of growth initiatives including the expansion of Fluent’s unsecured lending offering.

Andy Marsh, managing partner at Beech Tree Private Equity, said: “We have looked at a number of online platforms in the last few months and Fluent Money really stood out as best in class.

“We are excited to be working with Kevin and the team and we have been impressed by their commitment to customers, compliance and efficiency.

“The management have invested heavily in the business to date and we are looking forward to support their plans for the future.”

Marsh and colleague Adam Rudd are joining Fluent’s board as non-executive directors.

Kevin Hindley said: “We are on an exciting trajectory to significantly grow our business and I am delighted to have Beech Tree Private Equity on board. We met Beech Tree as part of their sector-driven approach as they had been looking for the right platform in the online lending space.

“We are excited to be working with Andy and Adam as they understood our core business from the outset. By using their industry knowledge and connections we have already started to further strengthen our core business and bring additional product lines into our portfolio.”

Beech Tree was advised by a team from DLA Piper’s Manchester office led by head of corporate James Kerrigan. DWF acted for management. Dow Schofield Watts’ transaction services and corporate finance teams also advised.

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