Exclusive: Nationwide and Investec set to bid for alternative lender Aldermore
Investec and Nationwide were among the firms circling alternative lender Aldermore yesterday as its South African owner Firstrand fielded offers for the company, City AM can reveal.
London-listed Investec and building society Nationwide were both weighing bids to buy the UK bank ahead of a deadline for first round offers on Tuesday, sources said.
First Rand kicked off a sale process earlier this year after Aldermore was dragged into the motor finance mis-selling scandal via its motor lending division Motonovo.
An Investec spokesperson said the company did not comment on market speculation. Aldermore and Nationwide declined to comment.
Lloyds was also said to be among the frontrunner to buy the firm, according to people familiar with the matter.
The interest from Aldermore’s rivals comes amid a wave of consolidation in Britain’s mid-market banking sector. Nationwide previously snapped up Virgin Money for £2.9bn in 2024 and Santander acquired TSB in 2025.
Private equity firm Warburg Pincus was also likely to submit a bid for Aldermore, sources told City AM, while financial focused private equity firm JC Flowers and CVC were also set to team up on a joint bid, City AM understands. CVC declined to comment and JC Flowers did not respond to a request for comment when contacted by Reuters, which first reported their interest.
Warburg Pincus declined to comment.
Aldermore, which also offers mortgages, savings accounts and business loans, reported profit of £193.5m in 2025, down from £253.5m a year earlier.
Firstrand cut its earnings forecasts earlier this year blaming a “deeply flawed” and costly motor redress scheme, which has sent shockwaves through the UK banking sector.
While the scheme is being challenged in the UK courts, lenders could face a potential £9bn compensation bill. First Rand said it had set aside £510m to £750m to deal with the potential payout.
Metro Bank was also among the potential suitors, Sky News previously reported.