Thursday 20 February 2020 2:32 pm

Goldman Sachs-backed startup Neyber in talks with administrators

A London-based startup that has been backed by Goldman Sachs is reportedly in talks with administrators in a bid to secure its long-term future.

Neyber, a consumer finance provider that enables employees to borrow against their salaries, is in discussions with accounting firm BDO about a range of strategic options, Sky News reported. 

Read more: Goldman Sachs ‘in talks’ to partner with Amazon on small business loans

Possible outcomes include a so-called pre-pack sale, in which a buyer is lined up for a company’s assets before administrators are appointed, according to Sky News. A solvent capital-raising or sale is also said to be possible. 

Goldman Sachs backed Neyber via one of its private capital funds in 2017. The investment included a small amount of equity and £100m of debt drawn down by the Neyber vehicles that issue loans to consumers, the broadcaster reported.

Although the Wall Street bank would not confirm the size of its stake in Neyber, one source told Sky News it is currently “less than five per cent”.

Neyber’s website lists a series of client employers including Asda, Coop, DHL and Bupa.

According to reviews posted on Trustpilot, a series of Neyber customers have complained about long response times and previously-approved loans being cancelled. 

Read more: Goldman Sachs partner caught up in 1MDB scandal barred from banking industry

In responses to some of the negative reviews, Neyber said it had “made some operational changes in recent weeks and unfortunately this has had a negative impact on our customers’ borrowing experience”.

Goldman Sachs and Neyber declined to comment. BDO has been contacted for comment.

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