| MARLIN, THE UK’s LEADING LITIGATION SPECIALIST-DEBT BUYER, SIGNS INVESTMENT DEAL WITH PRIVATE EQUITY GROUP |
Marlin, the leading purchaser and manager of consumer debt and a specialist in litigation-based recovery, has agreed to sell a controlling stake to Duke Street, the mid-market private equity group which is growing its financial services platform.
Duke Street, established in 1988, currently has more than €2bn of committed capital under management. Its two funds are at present invested in nine portfolio companies with an estimated enterprise value of more than €2 billion and a turnover of €2.2 billion. It specialises in transforming businesses through both buy-and-build and organic growth strategies, using the extensive experience of the deal team, industry experts (Operating Partners) and exceptional management teams.
Significant capital investment and operational support from Duke Street will enable Marlin to accelerate its success as a purchaser and manager of non-performing debt, with a leading specialism in account segmentation and litigation strategies to achieve industry-leading recoveries.
Following strong growth in revenue and profits in 2008 and 2009, Marlin believes that now is a good time to welcome a major new investor to provide it with increased capital, further good contacts and superior knowledge of the banking industry. In turn, Duke Street recognises the attractive returns available from backing a reputable, forward-looking, well regulated business with a competitive edge in a fast-growing market.
Operating in the high-balance segment of the market, Marlin is already a leading debt purchaser among those with a specialist litigation focus. The Group’s unique approach is based on a proprietary database and set of algorithms that enable the evaluation, identification and prioritisation of debtor accounts suitable for the litigation process according to their individual circumstances. It also uses a streamlined process that enables judgment and enforcement orders to be obtained rapidly.
Industry trends support Marlin’s plans for growth: banks are taking more deals to market as they grow confident that debt purchasers have funds to make acquisitions.
Commenting on the investment, Marlin’s founder and Chief Executive, Martin A Dunphy, said: “We are delighted that a highly-regarded private equity firm such as Duke Street has decided to partner our team in this rapidly developing sector. Our culture of regulatory compliance and our success in building a compelling segmentation and litigation model puts us in a strong position with debt vendors. With Duke Street’s capital we can take Marlin to the next phase in its development.”
Duke Street partner Miles Cresswell –Turner added: “Marlin has the potential, with funding and operational help from Duke Street, to become a clear category-killer among litigation-focused debt purchasers. The DP sector is set to recover sharply in the next two to three years, so this investment is an opportunity to build a platform with strong upside.”
Financial services remains a key area of focus for Duke Street. Last month the group agreed to acquire a 69% shareholding in the Payzone Group, Europe’s largest consumer payments acceptance network, at an enterprise value of €104m, as part of the AIM-listed company’s financial restructuring. This investment in Marlin will add further considerable potential to Duke Street’s financial services portfolio. |
