European private equity firm Palamon Capital Partners is to sell Nordax Finans, a Nordic consumer finance firm, to Vision Capital in a deal which values the business at €105 million, the two firms said on Monday. The deal will net investors from Palamon’s €440 million 1999 vintage first fund a multiple of 3.7x invested capital.
The deal sees Vision managing partner Andrew Hawkins reunited with Nordax having been involved in Palamon’s original investment in the firm back in late 2003. Hawkins had been one of Palamon’s original founders and left the firm to join Vision in 2007.
Nordax provides unsecured loans to individuals of good credit standing across the Nordic region. The company operates in Sweden, Norway, Denmark and Finland. It was established as a start-up by an experienced management team led by Morten Falch, backed up by equity from Palamon. It now has more than 75,000 customers and a €500 million loan portfolio.
Palamon partner Erik Ferm said in a statement that the success of the strong returns generated from the transaction demonstrated the “success of our thesis-led investment approach in consumer finance”.
Palamon has a number of other consumer-facing financial services businesses in its portfolio. Fund I includes Towry Law, a wealth management business with £4.5 billion (€5.2 billion; $6.9 billion) of client money under management or advice, and SAV Credit, a specialist credit card provider which last month acquired an £835 million credit card portfolio from Citigroup.
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