£10m supports management buyout and expansion of compliance solutions firm
Regulated compliance solutions provider, Product Partnerships Ltd (PPL), has secured £10m to fund its management buyout.
Leeds-based PPL, which received the investment from Arete Capital in Liverpool and TDC’s Impact Fund, based in Manchester, is planning to expand and enhance its offering and proprietary technology platform.
Founded in 2014, PPL provides outsourced compliance services to retailers offering consumer credit products covering both directly authorised firms and appointed representatives under Financial Conduct Authority (FCA) regulations.
Since its inception the company has built an impressive portfolio of blue chip clients, including Google, Aston Martin, JD Sports, Peloton, and Bensons for Beds. Today, PPL oversees more than £260m in credit transactions across its network.
Historically focused on the motor industry, PPL has successfully diversified into other FCA regulated sectors, including retail, green energy, and financial services.
The business has delivered sustained growth and now looks forward to further consolidating its position as a compliance leader, investing in regulatory technology and allowing it to grow in a controlled way, while continuing to balance and mitigate risk.
To support its regulatory and growth objectives, PPL has invested heavily in its team, with new hires in compliance, account management and technical roles, and by sponsoring the team’s individual professional development.
This will build on the exacting standards of compliance already embedded within the business, and continued focus on achieving good customer outcomes.
Arete played a pivotal role in structuring the MBO, securing a tailored private credit facility with TDC via its Impact Fund to facilitate the transaction and future acquisitions.
As part of the deal, Arete has also helped to strengthen PPL’s board and leadership team, appointing Peter Cowgill as Chair, as well as a new Chief Compliance Officer and Chief Financial Officer. Peter, ex-Executive Chairman of Bury-based JD Sports, brings a wealth of retail experience to the role.
Phillip Garlick, Chief Executive of PPL, said: “The investment from Arete and TDC is significant for our business.
“It provides us with the financial firepower to invest in compliance resources, accelerate organic growth, explore strategic M&A opportunities, and continue our expansion into high potential sectors such as green energy.
“We are also committed to further developing our proprietary technology into a fully fledged SaaS solution, enhancing value for our clients.”
Simon Lord, Partner at Arete, said: “PPL is a dynamic, growing business with significant untapped potential. The demand for compliance-based solutions in the retail sector is stronger than ever, and PPL is perfectly positioned to capitalise on these opportunities.
“We are excited to support Phillip and his team on this transformational journey.”
Jon Petty, Investment Director at TDC, said: “Through our Impact Fund, we are committed to supporting high growth northern SMEs. Phillip and the PPL team have demonstrated their ability to drive sustainable growth, and this investment will enable them to expand further, create new jobs, and contribute positively to the regional economy.”
Private capital investor, Arete, provides tailored equity solutions – up to £15m – to ambitious businesses and management teams. Its portfolio includes companies such as Leonard Curtis, Vivify Venues Ltd and Chillblast.
The deal was led by Simon Lord and Jamie Newall from Arete, with support from Hill Dickinson, led by Matt Noon/Alex Thow, Cortus, led by Ben Emmett, and Claritas Tax, led by Peter Hully, that provided legal, financial and tax structuring expertise to Arete during the transaction.
