Last week, Cabot Square Capital substantially increased its equity investment in Blue Motor Finance (Blue). This further round of investment demonstrates Cabot’s continued confidence in Blue’s business model and value potential. It follows the announcement in December of a new £300m financing facility with a leading international bank and provides Blue with sufficient funding to deliver beyond its 2021 plans.
Blue continues to deliver very attractive investment opportunities characterised by loan portfolios with relatively low average loan sizes, low term lengths, diversity in originations and customer base, good security and predictable low default rates. Blue’s long term consistency and prudency in credit risk policy has supported this investment and their ongoing performance.
Tiku Patel, CEO of Blue Motor Finance commented “In these challenging times, we are delighted that Cabot is willing to further invest in our business. Through the crisis, we have shown our ability to treat customers fairly, maintain good operational capability and carefully manage credit risk. Cabot continues to be a great partner for Blue and we are delighted in their confidence as we grow our business for the future.”
Stuart Williams, CFO of Blue Motor Finance commented “This further investment clearly supports and values our approach in bringing together technology, data and analytics to build a flexible, growing and profitable business platform as we look to the longer term.”
About Blue Motor Finance:
Blue provides loans to consumers for used cars through dealers. Remarkable growth has led to Blue being ranked on the Financial Times’ 1,000 Fastest Growing Companies in Europe (FT1000) for 3 consecutive years, topping the list in 2019. Since start up in 2015, Blue has lent more than £1.5b to more than 150,000 customers.
Blue provides its introducers and customers with outstanding service based on technological innovation and the use of data and analytics. Blue is one of the most flexible and advanced direct lenders in the market. It offers loans to a very broad range of customers, fast decisions and great convenience.