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 staff 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 akin 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.

Over the past 4 years, the enterprise has nearly quadrupled the full quantity of advances it allows together with doubling its worker headcount.

Evolution has made two key strategic acquisitions lately: Click on Supplier in July 2021 and Movement Finance in Might 2023.

Fairness for the funding shall be supplied by Carlyle Europe Know-how Companions V, a €3bn fund which invests in know-how corporations throughout Europe.

Fernando Chueca, managing director within the CETP funding advisory staff, stated: “In Evolution, we recognized the chance to companion with a sophisticated know-how platform within the UK’s fragmented marketplace for used automobile finance, which we imagine is a lovely and rising phase.

“Along with its market main place and excessive boundaries to entry, we imagine the continued improvement and growth 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 whole staff at Evolution.”

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

“We want to thank the staff at LDC for his or her assist during the last 4 years, funding within the improvement of our know-how 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 remodel the motor finance market.”

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

“As well as, Evolution has continued to spend money on its know-how, taking part in a number one function within the digitisation of the motor finance market and growing revolutionary digital finance options which are shaping the trade and buyer expertise. We stay up for persevering with to work collectively to assist Evolution’s future development plans.”