Barclays Private Equity is backing a management buyout of non-conforming
lender Preferred Mortgages in a £270m deal.
Following a similar investment in credit card firm Clydesdale in January,
BPE has bought an 83 per cent stake in Preferred from the Rotch Property
Group, with the remaining 17 per cent going to the management team.
The buyout was led by Preferred chief executive officer Dennis Pitocco and
financial director Phil Hopes. As a result of the deal, Preferred sales
manager John Webster steps up to business development director and George
Patellis joins as operations director from Great Western Financial Services.
BPE is a division of Barclays Capital, the investment banking arm of
Barclays Group. It has inv- estments in financial services companies,
including Aon and Admiral Insurance Services.
Pitocco says: “Preferred has a unique approach to lending, working with a
wide range of intermediaries with a highly flexible approach to product
design. With BPE's investment and the strengthened management team, we can
really drive the business forward.”
BPE investment director Owen Clarke says: “This market is moving
incredibly quickly. We are seeing very rapid growth and signs of interest
from mainstream lenders that we believe can only help to establish the
non-conforming market much more firmly.”