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

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

The transaction is topic to FCA approval.

Primarily based in Chesterfield, Evolution is a technology-led motor finance platform that connects automotive 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 seller forecourts, together with Marshall, Sytner Group and Belief Ford, and main online-only used automotive sellers resembling Cinch and Cazoo.

It additionally has model partnerships with the AA and fintech companies like Experian and ClearScore, which provide 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 full quantity of advances it permits together with doubling its worker headcount.

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

Fairness for the funding will probably 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 staff, stated: “In Evolution, we recognized the chance to associate with a sophisticated expertise platform within the UK’s fragmented marketplace for used automotive finance, which we imagine is a beautiful and rising section.

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

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

“We want to thank the staff at LDC for his or her assist during the last 4 years, funding within the growth of our expertise platform, and for serving to us to place Evolution at the vanguard 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, associate and head of South at LDC, added: “Lee and his staff have nearly quadrupled the full 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 put money into its expertise, taking part in a number one function within the digitisation of the motor finance market and creating modern digital finance options which might be shaping the trade and buyer expertise. We stay up for persevering with to work collectively to assist Evolution’s future progress plans.”