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Duke Street scores 3x return on sale of Marlin Financial to Cabot Credit

10 Feb 2014

UK mid-market buyout firm Duke Street Capital has sold specialised debt buyer Marlin Financial Group to Cabot Credit Management for £295m, yielding a 3x return on its investment.

Marlin will form part of the CCM group, an acquirer and manager of consumer debt, but continue to operate from its current location in Worthing, West Sussex, under the existing Marlin brand.

The company acquires non-performing unsecured consumer credit, with a proven track record in the financial services sector, acquiring credit card, unsecured personal loan, overdraft and auto finance receivables from banks and other financial institutions. Founded by Martin Dunphy in 2002, Marlin employs approximately 150 people, with offices in London and Worthing, West Sussex. It owns portfolios with a face value of £2bn and manages over £m of collections per month.

In April 2010, Duke Street made a £12.5m investment in Marlin, alongside Dunphy. Shortly after, Marlin secured an £80m three-year syndicated revolving senior credit facility from RBS and Investec.

Miles Cresswell-Turner, Duke Street said, “I am immensely proud to have been associated with Marlin during its transformation from a niche player to a leading specialised UK debt buyer. Over the past four years of Duke Street investment, Marlin has not only grown faster than any of its peers (with a five-fold increase in turnover), but has also achieved the highest return on assets and the lowest volatility of outcome amongst individual portfolios – a really impressive performance. It is a testament to the management and broader team that it is now becoming part of CCM, a leading UK debt purchaser.”

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