According to sources close to the deal the transaction was funded by a combination of cash and equity. Enterprise Finance is backed by ISIS Equity Partners which currently has £1.2 billion of funds under management.
The existing Enterprise Finance board, chaired by David Campbell and led by Danny Waters will welcome West One Loans Directors Duncan Kreeger and Stephen Wasserman, David Kreeger will also remain with the business. However, following the sale of his shares, Mark Abrahams will be leaving to pursue other ventures. Although, Mark remains an investor in the bridging loan opportunities generated by West One Loans, he will no longer be part of the company.
The duo which are both based in Borehamwood, Hertfordshire are to move in new larger headquarters in the local area.
Danny Waters CEO of Enterprise Finance said: “We have known the West One Loans team for a long time. Over the past six years, we have watched the business grow from a concept to what it is today – an established, financially robust and proven bridging lender with over £100m of loans under management. We feel, through this acquisition, we can help West One Loans realise its considerable potential far sooner. Also, with Stephen and Duncan joining the board, we will be adding strength and depth to our own senior management team and I look forward to working with them to take the business forward.”
The two companies are known to have a close relationship going back several years.
Enterprise, has brokered facilities for West One Loans on multiple occasions, with some completing in a matter of days. The relationship was publically evident in light of a £1.825 million completion back in 2011.
West One posted a press release on its website quoting Danny Waters. He said: “Enterprise Finance has a valued relationship with West One. We perceive it as a close partnership and as a consequence we know we can often complete complicated transactions with a minimum of fuss in record time. This loan, which completed in less than five days, is an excellent example of how a close working relationship can really pay off.”
Sources have predicted that the move is likely to be perceived as unusual in nature, in regards to the flow of business between the firms. The buyout is set to alter the dynamics of how both firms currently interact with industry-wide business.
Back in December 2012, Danny waters stated in a blog: "We are the single biggest introducer to West One Loans and in November alone are on track to complete over £12m in loans."
Emily Gestetner, CFO of Enterprise Finance, added: “This is an unconventional deal in that the market is more used to lenders acquiring distributors. However, there are numerous synergies between the two companies that we are keen to capitalise on in order to grow the group as a whole.”
Enterprise Finance sources and manages over £350 million per annum of secured, bridging and commercial loans.
More on this as it unfolds.
With assistance from Matei Rosca
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