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August 11, 2009updated 12 Apr 2017 4:34pm

AnaCap to buy Cattles Invoice Finance

AnaCap Financial Partners is buying Cattles Invoice Finance (CIF) from troubled subprime lender Cattles, the private equity firm has announced AnaCap will pay around £10.4 million (12.1 million) in cash, equivalent to CIFs net asset value, and £59.6 million in inter-company loans, for the company

By Jason T

AnaCap Financial Partners is buying Cattles Invoice Finance
(CIF) from troubled subprime lender Cattles, the private equity
firm has announced.

AnaCap will pay around £10.4 million (€12.1 million) in cash,
equivalent to CIF’s net asset value, and £59.6 million in
inter-company loans, for the company. Future funding for CIF will
be provided by Lloyds TSB Commercial Finance, AnaCap added.

“We are excited about the future prospects for CIF,” said Chris
Patrick, M&A partner at AnaCap. “The deal will provide vital
continuity for CIF’s staff and clients. With our support and
backing, CIF will be able to further expand its operations in the
SME market.”

Amongst other companies, AnaCap’s portfolio includes independent
IT finance provider Syscap, and the UK’s first private-equity owned
bank, Aldermore, which was created after AnaCap acquired Ruffler
Bank in May.

The CIF deal is expected to complete in mid-September, and is
subject to shareholder approval at a general meeting to be held on
August 27. Cattles said that it would use the proceeds from CIF’s
sale to repay around £65.5 million of bank debt, which it hopes
will stabilise its financial position.

CIF’s senior management is expected to transfer with the
business, with AnaCap’s Peter Cartwright and Andy Wynn joining
CIF’s board.

“This deal is welcome news for the clients and staff of CIF and
we are excited by the opportunity to build a stronger business with
the support of an experienced parent. Over recent years, we have
operated increasingly autonomously from Cattles plc, as it has
focused on consumer lending,” said Doug Crawford, chief executive
of CIF.

“AnaCap’s combination of analytical and operational expertise
will provide our existing, experienced management team with the
resources needed for continued expansion.”

Earlier this year, AnaCap closed its second fund, in which it
raised €575 million from investors including Goldman Sachs,
Allianz, Honeywell, and others. The private equity firm’s total
assets under management now exceed €920 million.

Jason T Hesse

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