AnaCap sells Cabot Credit Management to J.C. Flowers

AnaCap Financial Partners LLP, the specialist European financial services private equity firm, announced the sale of Cabot Credit Management to funds managed and advised by J.C. Flowers & Co. LLC. The transaction agreements have been signed, and the transaction is expected to complete imminently.

CCM was formed after the merger in April 2011 of two businesses, Apex Credit Management and Cabot Financial, purchased by funds advised by AnaCap and its co-investors, Morgan Stanley Alternative Investment Partners and Partners Group.

Following the integration of the two businesses, backed by AnaCap’s intensive operational engagement, CCM has become a market leading acquirer and manager of consumer debt with over £7.7bn of assets under management covering more than 3.5 million customer accounts.

Over the past year, CCM’s results showed a 13 percent revenues increase driving adjusted EBITDA to £111m, a YOY increase of 23 percent. In the 12 months to 31 December 2012 the group spent £99m on new portfolio purchases, and expects to exceed that in 2013. In September 2012 CCM issued a £265m Senior Secured Note thereby securing longer term funding for its business activities.