LDC takes significant minority stake in motor finance specialist Evolution Funding

On 19 February 2019, Evolution Funding announced that it had secured investment to support its expansion from leading mid-market private equity firm LDC. The transaction will see LDC take a significant minority stake in the £110m valued car finance broker and has been backed by acquisition finance facilities from Santander and Aviva Investors. The transaction is subject to customary conditions including receipt of required regulatory approval.

The firm's Evolve technology and digital customer journey is used at point of sale in dealerships, and also online during the process of researching or purchasing a used vehicle, to deliver brokered motor finance solutions from a panel of 34 funders. This helps dealers and customers secure vehicle finance with rapid online decisions and at competitive rates.

Following the transaction, Evolution Funding plans to invest further in its technology, digital capabilities and to scale the presence of both its Dealer B2B and B2C propositions.

Gowling WLG advised LDC on its investment, the terms of Evolution Funding's acquisition and the negotiation of new senior debt and working capital facilities.

The Gowling WLG team was led by corporate partner Chris Towle, supported by senior associate Chris Letters and associate Grace Humber. Partner Chris Brierley and director Navin Prabhakar led on the banking piece, with support from senior associates Sophie Coggan, Richard Crawley and Matthew Owen. Transaction Services specialists Greg Dunn and Mel Mapstone coordinated a multi-disciplinary legal due diligence exercise, with particular assistance from UK Financial Services & Regulatory partner Ian Mason, director Penny Sanders and senior associate Sushil Kuner. Partner Zoe Fatchen and principal associate Tom Rank advised on tax.

The LDC team was led by Investment Director Lawrence Dean, Head of South West & Wales Andy Lyndon and Director Alistair Pendleton, with support from Investment Executive Dan Gluckman.

Gowling WLG's Private Equity team is experienced in advising private equity and venture capital investors on a full range of matters on the life cycle of an investment, combining technical excellence with in-depth market knowledge.

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