Perch Group partners with Quilam Capital to Complete MBO

News | July 4, 2022

Perch Group (“Group”)  is pleased to announce both the completion of a management buy-out (“MBO”) and the creation of a significant new committed facility provided by Quilam Capital. The MBO will see the incumbent management team comprising Craig Hinchliffe, Andrew Bartle, Gary Edwards, Max Houghton and Simon Unsworth together with Quilam Capital take control of the fast growing digital led financial services Group. Mark Robins will also be joining the board as a Non-Executive Director.

Founded in 2018 the Group now employs over 120 staff in Blackpool and provides creditors with a range of technology driven services. Perch differentiates itself in the market with a focus on working with fast-growing non-bank lenders and takes a partnership approach to help them establish an outsourcing or debt sale programme for their collections, allowing them to focus on their customer acquisition strategy and front-end journeys. Perch has an ability to operate across the entire collection lifecycle enabling it to tailor its approach to meet the specific requirements of its clients.  The Group currently  provides:

  • Debt purchase – through Perch Capital, a specialist debt purchaser of regulated and unregulated unsecured debt portfolios
  • Debt collection services – through ACI, an FCA regulated digital first debt resolution agency
  • Litigation and enforcement services – through TM Legal Services, an SRA regulated and digitally enabled law firm
  • Field services and reconnection – through Field-Connect  

To date the Group has acquired over 160 portfolios with a total face value in excess of £500m across 600,000 customer accounts. Along this journey the Group has developed its deep understanding of the consumer market and has established itself as a trusted partner with a significant number of leading specialist lenders with an ability and agility to manage complex portfolios.

As well a large committed debt facility, Quilam has also taken a direct equity stake in the business. The investment from Quilam both enables the business to super charge its growth objectives and provides support to the group through the deep expertise and market knowledge that Quilam Capital has in the NPL/ speciality finance space.

Craig Hinchliffe, CEO  said, “This buyout is the start of a new and exciting chapter in the Perch story and will allow the management team to push forward with our growth plans.  I would like to thank all our shareholders, lenders, employees and advisors that have worked with us over the last year to make the MBO a reality. The investment is a significant endorsement of our team and business as a whole and the management team are proud to be part of the Quilam family. We are looking forward to growing our brand, client base and services and look forward to supporting more customers on our mission to empower customers to take control of their finances and achieve financial wellbeing.

Commenting on the transaction, Sarah Watts, Director at Quilam Capital added, “We are delighted to partner with Perch Group to support the management team on their buy-out. It was evident to us from the outset that Perch’s proposition is first class, supported by innovative technology, market leading customer service, and speed of execution. Having worked with many of the leading market participants over the years we are well placed to provide Perch with the support they need to deliver their growth ambitions”.

Charlotte Round from the banking team at Fieldfisher LLP provided legal advice to Perch Group on the debt facility and Adrian Jones, Tom Gastrell, Stephanie Burns from the corporate team at Wiggins LLP managed the equity process.  Charlie Bischoff and Hannah Ramsey from the banking team at Travers Smith LLP provided legal advice to Quilam Capital on the debt facility and Dominic Cromwell from Foot Anstey LLP provided legal advice to Quilam Capital on their equity position.  Perch Group was also advised by Nigel Barratt and the Corporate Finance team at Hurst Accountants Ltd.

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