Apax Partners

Picture Financial is the fastest growing provider of secured home loans in the UK. Its target market are people with good credit histories allowing them to consolidate existing credit, usually credit cards, personal loans and car finance at a combined lower interest rate than the existing debt. The loan is secured by a mortgage on the borrower’s home.

Picture finds its customers by advertising on TV, in print media, direct mail and on-line channels under the Picture brand. It also offers loans via loan brokers.

The profile of the customer is usually a family which values its access to credit with excellent payment records, usually aged circa 40 with long term employment, bank history and with a first mortgage with a well known high street lender. Typically the loan size is £40,000.

Picture was founded in April 2004 by a group of Managers who had previously left a high street bank where they had created and developed the market leader in Picture’s sector. The Managers had decided to start their own business and turned to Funds advised by Apax Partners to finance the business. Apax helped recruit an experienced Finance Director. Apax Partners’ Funds provided venture capital funds and in October 2004 the company made its first loan.

Apax Partners, working with the management team, secured £450 million of warehouse line to help scale up the business. The warehouse line is the largest ever provided to a start-up in the UK and is a reflection of the longstanding business relationship Apax has with the lender and the reputation enjoyed by the management team.

Working with the management team Apax recruited a Chairman, Ges Whitmore, who had been CEO of Crisp/Exchange, a successful venture investment of Apax Partners’ Funds.

Apax recruited as non-executive Director, Jack Caouette, who also had been CEO of a successful Apax Partners’ Funds portfolio company specialising in bond insurance and credit enhancement. His experience in debt capital markets and securitisation technology are an important addition for Picture to mature into a stand-alone finance company.

Apax Partners’ Funds invested in Picture Financial because Picture’s management team was strong, having previously built the market-leading second mortgage lender in the UK, and the second mortgage market was growing strongly. The business consolidates credit card borrowing, so it lags growth in the credit card market, which has been growing very strongly over the last decade in the UK.

Neville Allport, CEO of Picture Financial, said, “We chose Apax to be our ‘Equity Partner’ based upon our assessment of how Apax would want the business managed. This assessment has proved to be correct. It is a demanding but pleasurable experience.”