Premium Credit sold to private equity firm1st November, 2012 by Jenny Yu
A private equity firm has acquired the company that owns Fairway Credit, which administrates direct debit payments on behalf of members of hundreds of British golf clubs.
Premium Credit has been sold to Chicago-based GTCR, an equity firm that specialises in investing in financial and healthcare companies. As part of the deal, Premium Credit has appointed a new chief executive, Andrew Doman, formerly chairman and CEO of Russell Investments and head of insurance consulting at McKinsey & Co London.
“GTCR is partnering with new CEO Andrew Doman and existing management of Premium Credit to recapitalise the company and further invest in the company’s market-leading technology and services’ offerings going forward,” said a GTCR spokesman. “Total asset value was approximately £900 million.
“The acquisition of Premium Credit was supported by a consortium of leading banking institutions: Barclays Capital, Lloyds Banking Group, Deutsche Bank, HSBC and Société Générale have committed to a long-term financing facility to support Premium Credit’s existing funding obligations and future growth, while GTCR’s investment in Premium Credit was funded from GTCR Fund X, a private equity fund raised in 2011 with more than £2 billion of committed capital.
“Current CEO Nick Pearce will remain actively involved with Premium Credit as a consultant and member of the board of directors, Simon Moran will remain as chief marketing officer and head of Insurance Premium Finance, and Robert Allan will remain as chief financial officer.”
Fairway Credit enables thousands of golf club members at hundreds of golf clubs to pay their annual subscriptions by periodic installments instead of by single annual payments. It is also a major sponsor of the Golf Club Managers’ Association. MBNA Europe, a subsidiary of Bank of America Corporation, previously owned the business, which it acquired in 2004.
“We are thrilled to complete the acquisition of Premium Credit. Our extensive experience in insurance services, payment processing, and specialty finance provides GTCR with a unique perspective on the company and its opportunities going forward,” said Collin Roche, managing director at GTCR.
“We look forward to supporting Andrew Doman and the management team’s efforts to drive product expansion and continued technology investment in Premium Credit’s operations and service delivery. We will also selectively evaluate building on the company’s success through acquisitions as well as geographic expansion opportunities in Europe and North America.”
“GTCR’s investment is a strong endorsement of the attractive business built by Premium Credit’s management and employees over many years,” noted Mr Doman. “Premium Credit has strong customer relationships and a tremendous quality of service orientation. I am excited to join such a talented team and look forward to growing the franchise.”