Bluestone Group’s (“Bluestone”) expansion in the UK and Irish finance and technology markets has received a substantial boost from alternative asset manager, Pollen Street Capital (“PSC”). The parties have agreed terms on a £15m capital raising in the form of a 3 year debt facility.
Bluestone will use the capital to support the continued growth of the group’s specialist consumer lending and technology platforms.
Bluestone’s Founder and Chairman, Alistair Jeffery, welcomed the move, which will further broaden the lender’s institutional support, and provide start-up and expansion capital for group businesses: “We’re extremely pleased to have agreed terms with PSC, and to win the backing of such an experienced and high quality funding partner. The surplus capital raised will be used to support the expansion strategy of our four subsidiaries and further develop our digital platform.”
Lindsey McMurray, Founder and Managing Partner of Pollen Street Capital, added: “We are excited to support Bluestone’s next expansion phase through the £15 million debt facility. We look forward to a strong, long-lasting partnership and believe that this sets a solid foundation for Bluestone’s continued growth.”
The transaction caps a busy 12 months capital raising within Bluestone, with mortgage subsidiary Bluestone Mortgages concluding its maiden £210m securitisation, and auto-finance subsidiary Bluestone Motor Finance Ireland concluding its 5th and 6th securitisations with over €100million of issuance across the two transactions. Bluestone Group has experienced strong growth over the past three years, with revenue increasing at 24% CAGR and assets under management increasing at over 60% CAGR to over £300m.
The group’s strategy of incubating and exiting subsidiaries was demonstrated in 2018, with the sale of Bluestone’s Australian mortgage lending operations to funds associated with specialist credit manager, Cerberus Capital Management.