UK Debt Buyer Lowell Group Acquired by Private Equity Firm

Leeds, UK-based Lowell Group, widely acknowledged as the UK’s leading debt purchasing specialist, has been acquired by TDR Capital and senior management for an undisclosed sum from Exponent Private Equity.

Lowell Group buys portfolios of consumer debts and then manages the recovery of those debts, working closely with its customers to help them resolve their financial difficulties.

Lowell Group’s Chief Executive Officer James Cornell commented: “We are delighted to be entering the next phase in Lowell’s development with the support of TDR Capital.  TDR’s investment represents a resounding endorsement of Lowell’s success, built on the hard work, dedication and commitment of our team.  TDR has a track record of building value in its portfolio companies and we are looking forward to forging a mutually successful partnership with them in the years ahead. It has been a pleasure to work with the team at Exponent, who have made a significant contribution to the Group’s success.”

Exponent Partner Tom Sweet-Escott commented: “Exponent backs market leading businesses with exceptional management teams.  Lowell has proved itself over the last three years to be the clear market leader led by a highly talented team who fully deserve their success so far.”

TDR Partner Jon Rosen commented: “We have been focusing on the debt purchase sector for a while, and we are pleased to have the opportunity to partner with the management team and invest in a platform as strong and differentiated as Lowell.”

Exponent Private Equity acquired Lowell Group in 2008.  As at end August 2010, Lowell Group was servicing in excess of six million customer accounts with a value of £6 billion. The Group has established strong ongoing relationships with many of the UK’s leading debt sellers.  Its portfolios include loan, credit card, store card, mail order, overdraft, retail bank and various lower balance debt types, including mobile phone debts. Today Lowell Group employs more than 500 people at its state-of-the art HQ in Leeds and customer contact centres in Leeds and Preston.

Exponent was advised by Hawkpoint and Travers Smith LLP. TDR Capital was advised by Quayle Munro and Linklaters.

Formed in 2004 Lowell Group is a specialist debt purchasing company. Lowell Group buys consumer debts from a range of organisations and then manages the recovery of those debts, working closely with each customer to agree a suitable and affordable repayment solution. The business employs more than 500 people at its state-of-the art HQ and customer contact centres in Leeds and Preston.

Founded in 2002, TDR Capital is a leading private equity firm with approximately €2.6 billion of commitments under management. Collectively, TDR’s team has completed transactions with aggregate purchase price in excess of €15 billion and has a track record of investing in businesses that have delivered excellent returns for investors. More information can be found on TDR’s website

Exponent is a private equity firm investing in UK headquartered businesses with an enterprise value of between £75m and £350m.  It typically targets companies that are prominent and distinctive in their markets, are capable of operational improvement, and in which Exponent can deploy best-in-class management in order to create value.