Cabot Credit Management Purchases dlc

4 June 2015 – Cabot Credit Management (CCM), a leading acquirer and manager of consumer debt, has agreed to acquire Hillesden Securities Ltd, trading as dlc from its parent company Faccenda Investments. dlc is a U.K. based acquirer and collector of non-performing unsecured consumer debt, and represents a significant portfolio purchase for CCM.

dlc at a glance:

  • £3.3b face value of portfolios purchased across 188 portfolios and 1m customer accounts
  • £245m 10 year Estimated Remaining Collections as at 31 December 2014, before CCM scorecard uplifts
  • 20 years of UK debt purchase experience
  • £3,562 average account balance
  • 300 employees located in Brackley
  • No external debt

The acquisition will be financed largely though existing cash facilities plus a senior secured bridge.

dlc has been purchasing portfolios since 1994 and is the oldest debt purchaser in the UK with a proven track record in both financial and non-financial services assets. The substantial backbook of dlc will enhance and strengthen CCM’s data set. The application of CCM’s non-pay scorecard and experience in these markets will enable an improved liquidation across the business.  dlc has a small but growing Business Process Outsourcing (BPO) platform which CCM will look to grow.

Ken Stannard, CEO, Cabot Credit Management, said: “This purchase of dlc and its portfolios is a natural part of the ongoing consolidation in the UK debt purchase market, and takes Cabot’s 120 month ERC closer to £2 billion. The purchase of dlc’s portfolio represents an opportunity to bring on board a large number of portfolios in a single purchase, as well as adding exciting new BPO capabilities. We see substantial uplift opportunity to dlc’s ERC through leveraging CCM’s enhanced non-pay strategies and scorecards. We look forward to welcoming the dlc management team and employees to the CCM group.”

Robin Faccenda, Chairman of Faccenda Investments, said: “We believe this is a very positive step for dlc, in a sector where scale is essential. We recognised the need to identify a new owner that can leverage dlc’s established expertise, and develop the business further and are confident we have found that business in CCM.”

About Cabot Credit Management

Cabot Credit Management is a market leader in debt purchasing, contingency collections, and customer tracing, and is divided into three specialty businesses: Cabot Financial, Cabot Financial Ireland, and Apex Credit Management.

As at 31 December 2014 the combined Cabot Credit Management group has purchased assets totalling £1.3 billion, manages over £1 billion of assets on behalf of clients, collects over £30 million per month on portfolios it either owns or services on behalf of clients, and has delivered consistently strong financial performance, having grown its business in each of the last 16 years without exception.

The group, which has purchased over 4 million customer accounts, employs approximately 950 people with offices in Kings Hill, Stratford-upon-Avon, Dublin, Worthing and London. The company prides itself on its ethical values, customer service and high standards. It has an impressive list of accolades including:

  • Investors in People Gold and Champion awards
  • Credit Today Treating Customers Fairly Award 2015

The controlling shareholder of Cabot Credit Management is Encore Capital Group, an international speciality finance company providing debt recovery solutions, with the remaining equity being held by a fund advised by J.C. Flowers & Co. in addition to company management.

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