We build valuable, market-leading businesses

We strive to deliver consistent and superior returns for investors and partners. On average, the businesses in which we invest have enjoyed 3x profit growth while in our portfolio.

Our approach is founded on expertise, creativity, collaboration and hard work. We aim to perform, whatever the market conditions.

We invest in businesses with specialist offerings in the financial services sector, where challengers offer alternatives to incumbents in order to build the next generation of market leaders. 

Our track record is built on the ability to identify the right management team with the right proposition in specialist areas. We then add value with our expertise, experience, capital and PSC Network, to drive value for our portfolio companies and for our investors.

We look for the following characteristics:

  • Significant growth potential and ability to be long-term market leader
  • Operating in markets with strong structural growth drivers and with the foundations to support sustainable profit growth.
  • Differentiation through focus and specialism
  • Entrepreneurial management with strong leadership skills and a focus on partnership and collaboration.

We provide capital to support growth and our hands-on approach seeks to enhance and accelerate the business’ strategic direction.

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Working with us

We are passionate about what we do and seek to work with management teams and companies who share that passion.

We provide capital to accelerate growth by supporting new products and expansion into new markets, and by identifying and executing strategic acquisition opportunities.

We aim to bring specialist knowledge and best practice in a complex and changing environment.

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Pollen Street Capital are partners, not just investors. We support our businesses and their management teams with expertise as well as capital. On average, partner businesses produce a three-fold increase in profits while associated with Pollen Street Capital.

Case Study: Target - Automating complex and critical processing, servicing and administration

Leading platform to provide software and outsourcing

  • Large, high-growth markets driven by structural trends
    • Increasing trend for FS outsourcing
    • Delivers economies of scale to customers in complex processes
  • Proprietary, industry leading software
    • Well invested - barrier to entry
    • IP ownership drives high margins
  • Established client franchise with long-term contracts
  • High earnings visibility, growth and cash generation

Stretching growth plan driven by Pollen Street Capital ambition

  • Organic development into new markets including payments, plan management and special servicing
  • Recruited first class management - accelerated change and growth
  • Introduced and facilitated material contract wins by leveraging Pollen Street Capital eco system
  • Re-positioned the business to one focused on core technology capability as well as efficient business process management

Recently agreed trade sale at attractive multiple

  • Agreement signed May 2016 to sell core business to a leading software and services player
  • Closing occurred 20 August 2016
  • Retained stakes in three software platforms to drive future upside

Case Study: Shawbrook - Leading UK challenger bank

Creating a leading UK challenger bank

  • Substantial market opportunity as big banks withdraw from specialist lending sectors
    • Focus on asset classes that require expertise to underwrite to develop strong service proposition
    • Highly scalable platform
    • Attractive asset yields
  • Downside protection from asset underpinning
    • Majority of capital to support lending growth
  • Experienced management team with strong track record

Leverage PSC expertise to deliver a high-growth strategy

  • Industry insight to deliver an ambitious plan
  • Five bolt-on acquisitions identified through the PSC Network and executed by PSC team
  • Experienced management team put together by PSC
  • Operational excellence has delivered improving margins and increasing growth rates

Successful IPO with upside potential

  • IPO in March 2015 onto main market of LSE

Case Study: Arrow Global - Innovator in UK debt purchase

Debt purchase market ripe for new entrant with innovative approach

  • Significant market opportunity: Move from large banks to outsource more of their non-performing-loans
  • Acquired high quality assets to create base for business
  • Innovative approach to operations and data and IT enabled the business to scale quickly and become market leader
  • Efficiency operating model - cost ratio became one of the lowest in the industry enabling competitive bidding for new assets
  • Prudent balance sheet: £220m six year high yield bond providing certainty of funding and covenant flexibility to the group, underpinning the IPO business plan

Business scaled rapidly with PSC support

  • Relationship with management facilitated acquisition in off-market transaction
  • Positioned the business with new model - data led, master-servicer
  • Leader in compliance and risk at point when sellers sensitive to selecting the right partners
  • Added management from outside the industry to bring external best practice and public market experience to the operations
  • Invested further equity capital into the group once business model was proven, supporting a step change in organic growth and establishing Arrow as an industry leader

Exit through first IPO in sector

  • IPO in 2013 onto main market of LSE

 

Case Study: Moneycorp- High growth international payments

Growing market share in a high-growth market

  • Superior customer proposition drives loyalty and recurring revenues
    • Low churn rates and high growth
  • Strong multi-channel market access
    • Unique combination of online and offline presence
    • Partnership model optimizes acquisition costs
  • Scalable technology led offering
    • High and growing margins
    • Strong cash conversion

Pollen Street Capital enabled diversification and acceleration of growth

  • Strategic repositioning to focus on high growth payments
    • Increased growth and exit multiple
    • Significant large contract wins
  • Highly synergistic acquisition of smaller player
  • High quality team appointed by PSC to transform growth potential
  • Rapid profit growth as business able to scale up and become a leading player

Successful exit to large-cap private equity

  • Sale to Bridgepoint in 2014 for full exit