IGF Invoice Finance has been sold to a group of commercial lending professionals backed by Spring Ventures, a private equity investor specialising in management buy-outs of UK companies.
IGF’s former owner GLE Group, an SME funder, announced this morning (April 13) that it had been looking for a new owner that could support IGF’s plans to expand into new and growing markets.
GLE said Spring Ventures has the expertise and investment resources needed to meet this brief, but also the skills to grow and develop IGF.
Spring Ventures will initially invest £9m to fund the acquisition (buy-in management buyout) and provide growth capital. It will commit a further £11m of follow-on capital over the next three years and will take a majority stake.
The management buyout team includes John Onslow, John Nelson and Jon Hughes who collectively have 60 years experience in the commercial lending sector. Matthew Cooper, co-founder of Capital One Bank and former NEC of AIM-listed Inspired Capital, has also been appointed as chairman.
New chief executive John Onslow has previously grown and sold two asset based lending businesses including Centric Commercial Finance (sold to Shawbrook in 2014) and Heller Finance (acquired by GE in October 2003). Onslow also served as chairman of the Asset Based Finance Association.
Chris Manson, chief executive of GLE, said: “The decision to sell our interest in IGF is good news for all involved: Spring Ventures has the management expertise that IGF will need to expand into new markets, whilst GLE sets its sights on a new and wider range of business services.
“We are currently in a very strong position in terms of profitability and financial resources and are fortunate to have a board with a great deal of ambition.
“The sale of IGF will enable us to broaden our remit considerably and focus on developing new revenue streams in a range of areas.”
IGF will lend up to £5m to meet the growth aspirations and working capital needs of UK SMEs with revenues up to £100m.
By Marcel LeGouais