Clearwater raises £41 million to fund Clode acquisition

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Clearwater Corporate Finance LLP has advised Clode Group Ltd (“Clode”) on its acquisition of Clode Funding Limited, which trades as Clode Retail Finance, and V-12 Holdings Limited, which trades as v12finance.com.

Oregon Capital Partners, in partnership with a leading family office and the Clode senior management team, have invested £6 million of capital to fund the acquisitions and future growth of the business. In addition to this, Clode has also secured a new three-year £35m funding facility from RBS Financial Institutions Group.

Clode is the largest independent provider of point-of-sale retail finance to the customers of UK retailers, a market that sees over £3.5bn of lending per annum. Headquartered in Cardiff, Clode delivers its interest free and interest bearing credit products in multi-channel environments utilising the v12finance market-leading online credit application software.

Clode is led by Chief Executive Officer, Nick Davies, who joined the business in 2002 and has over 20 years’ experience in the retail credit sector together with Group Finance Director, Jeremy Morris and Group IT Director, Matthew Hatton.

Nick Davies commented: “The retail promotional finance market has seen a significant increase in demand through the recession as retailers focus on retaining customers and driving sales. This has happened at the same time as a reduction in the supply of funding to the market due to the effects of the credit crunch. This represents a fantastic opportunity for us to expand our business.”

Chris Smith, partner and head of Clearwater’s debt advisory practice, said: “This is a truly great time in the market for Clode. The development capital that we have helped raise, supported by structured banking facilities, will be used by the company to take advantage of its unique online credit assessment technology and significantly grow its share of this dynamic market.“

Angus Penman, founding partner at Oregon Capital Partners, said: “Clode is a quality profitable business with a strong market opportunity. We look forward to working with Nick and the rest of the management team to expand the business significantly over the coming years and realise their ambitions.”