Evolution Funding has secured investment to support its expansion from mid-market private equity investor LDC, which will take a significant minority stake.
The transaction will see LDC take a significant minority stake in the business and has been backed by acquisition finance facilities from Santander and Aviva Investors.
The business will continue to be led by co-founders Lee Streets and Jeremy Levine, sales director Chris Coverdale, with the team being joined by incoming finance director Kevin Kaye.
As part of the transaction, Steve Weller – former chief executive officer of LDC-backed price comparison website uSwitch – will be appointed non-executive chairman, while Tim Porter, former managing director of Lex Autolease, will be appointed non-executive director.
Lawrence Dean and Andy Lyndon from LDC will also join the board as non-executive directors.
Following the transaction Evolution plans to invest further in its technology, digital capabilities and to scale the presence of both its dealer B2B and B2C propositions.
Evolution’s chief executive, Lee Streets, said: “This is a big moment for the business. We’ve spent the last 15 years listening to customers and developing the best technology in the market for vehicle finance. Bringing a partner on board like LDC gives us not only the capital to accelerate our growth, but also the boardroom expertise to help us unlock the potential of our business.
“LDC understood our vision for the business from the off and shared the same ambition. This is a great outcome for our partners, customers and employees alike, and we’re hugely excited about our plans for growth.”
LDC’s investment director, Lawrence Dean, said: “Evolution Funding is a classic example of an entrepreneurial business that is disrupting a market with innovative technology to the benefit of its customers. Lee, Jeremy and the team have been forward-thinking, consistently growing the business since its inception, with a clear commitment to customer service and compliance.
“There’s a significant opportunity to scale further in the UK, working with new partners, and by investing in its market-leading Evolve platform and digital capabilities as well as its customer-facing product, MyCarCredit, which has significant potential.”
The transaction is subject to customary conditions including receipt of required regulatory approval.