Carlyle to acquire used car finance platform Evolution Funding

Carlyle to acquire used car finance platform Evolution Funding


International funding agency Carlyle has agreed to accumulate Evolution Funding, the UK used automobile finance platform, for an undisclosed sum.

The acqusition consists of funding alongside Evolution’s founders and present investor LDC.

The transaction is topic to FCA approval.

Based mostly in Chesterfield, Evolution is a technology-led motor finance platform that connects automobile sellers and auto finance suppliers with a number of lenders. 

Because it was based in 2002, the enterprise has grown to a workforce of over 500 individuals and helps over 4,000 vendor forecourts, together with Marshall, Sytner Group and Belief Ford, and main online-only used automobile sellers corresponding to Cinch and Cazoo.

It additionally has model partnerships with the AA and fintech providers like Experian and ClearScore, which supply entry to direct-to-consumer channels.

Within the final 12 months, Evolution has enabled practically 150,000 financing transactions with a complete platform quantity in extra of £2 billion.

During the last 4 years, the enterprise has nearly quadrupled the overall quantity of advances it permits together with doubling its worker headcount.

Evolution has made two key strategic acquisitions in recent times: Click on Vendor in July 2021 and Movement Finance in Might 2023.

Fairness for the funding shall be supplied by Carlyle Europe Expertise Companions V, a €3bn fund which invests in expertise firms throughout Europe.

Fernando Chueca, managing director within the CETP funding advisory workforce, stated: “In Evolution, we recognized the chance to companion with a complicated expertise platform within the UK’s fragmented marketplace for used automobile finance, which we imagine is a lovely and rising section.

“Along with its market main place and excessive obstacles to entry, we imagine the continued improvement and enlargement of Evolution’s digital platform, in addition to exploring M&A alternatives, can unlock vital worth.

“We stay up for working with Lee and the complete workforce at Evolution.”

Lee Streets, founder and chief government of Evolution Funding, stated: “In Carlyle, now we have discovered the perfect companion to proceed our progress journey, given their expertise rising and scaling entrepreneurial expertise companies like ours.

“We wish to thank the workforce at LDC for his or her help during the last 4 years, funding within the improvement of our expertise platform, and for serving to us to place Evolution at the forefront of the market.

“We’re excited for this subsequent stage of Evolution’s journey as we proceed to rework the motor finance market.”

Lawrence Dean, companion and head of South at LDC, added: “Lee and his workforce have nearly quadrupled the overall quantity of advances Evolution’s platform permits within the final 4 years; a major achievement given the uncertainty available in the market.

“As well as, Evolution has continued to spend money on its expertise, enjoying a number one position within the digitisation of the motor finance market and creating revolutionary digital finance options which can be shaping the business and buyer expertise. We stay up for persevering with to work collectively to help Evolution’s future progress plans.”



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Alex Lorel

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