Victory Park Capital Expands Strategic Partnership with Borro
Firm restructures investment to strengthen existing business
CHICAGO and LONDON, November 16, 2017-– Victory Park Capital (VPC), an investment firm focused on private middle market debt and equity investments, announced today that it has taken a majority stake in Borro Ltd., a leading consumer lender that offers loans secured by luxury assets. VPC originally provided Borro with a credit facility in Feb. 2014 to support its growing loan portfolio and will now expand its involvement to also include working capital financing along with strategic and operational support.
As part of the transaction, Tom Welch and Gordon Watson, partners at VPC, have joined Borro's board of directors.
"We’re very excited to expand our relationship with Borro by partnering with its new management team to help the company refocus on its core business, where we see a lot of opportunity," said Welch. "Having been involved with the business since early 2014, we are uniquely positioned to capitalize on this opportunistic investment."
"Victory Park Capital is the ideal partner for the next phase of Borro’s development, based on the firm's expertise and the team's knowledge of our operations," said John Allbrook, CEO of Borro. "Despite several business and leadership shifts over the past two years, we feel confident that with VPC’s partnership, we can capitalize on what remains a fragmented and niche market that continues to be underserved."
The transaction, which required change of control approval from the Financial Conduct Authority (FCA), closed on November 15.
Borro launched in 2008 in the UK, and has gone on to open offices in New York and Los Angeles. It is the leading international online platform for luxury asset-backed lending and has defined a new lending category in a climate where loans of this type were few and far between. Borro offers loans from $5,000 - $10,000,000 secured against luxury assets including fine art, antiques, jewelry, luxury watches, fine wine, prestige and classic cars and other high value assets.
About Victory Park Capital
Victory Park Capital Advisors, LLC (VPC) is an investment firm with a focus on alternative credit and a commitment to delivering attractive risk-adjusted returns and capital preservation for its clients. VPC provides privately negotiated debt and equity capital solutions to small and middle market companies across a wide range of industries. We target fundamentally sound businesses in need of liquidity and/or capital structure transformation and often take a leadership role in the financial restructuring process. VPC’s offerings leverage the firm’s special situations and credit structuring expertise and differentiated deal origination capabilities. The firm was founded in 2007 and is headquartered in Chicago, with offices in New York and Los Angeles. VPC is privately held and a Registered Investment Advisor with the SEC. For more information, visit: www.victoryparkcapital.com.
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