CABOT Square Capital, the specialist financial services private equity investor, has bought car finance provider Blue Motor Finance, the private equity firm told City A.M. yesterday.
Sources close to the transaction understand that Cabot Square planned to invest around £30m-£40m in the company.
The Cheshire-based Blue Motor Finance has also obtained a new £200m long-term funding facility from an unnamed international bank. The company will now offer auto finance backed by equity investment from Cabot Square along with funds from the new loan.
Tarun Sharma, investment director at Cabot Square, commented: “Dealerships and consumers in the motor sector have been restricted in their finance options since the credit crunch, and that has created a substantial opportunity for a new prime credit provider to step into the market.
“Blue Motor Finance has the industry connections and platform to become one of the market leaders in car finance in a short period, and we are excited to partner with this experienced management team to help them to achieve that.”