Investment Supports Management Buyout and Growth Plan for EMCAS
London – August 1, 2016 – Praesidian Capital Europe (“Praesidian”), a leading provider of senior and subordinated debt and growth capital in the United Kingdom and Northern Europe, announced today its £8.0 million investment of first lien debt in EMC Advisory Services Limited (“EMCAS” or the “Company”), a leading claims management business in the UK.
The funds support the buyout of the Company by incumbent management team James Scarth and Richard Hopwood and the realisation of their organic growth plan through increased investment in the Company’s leading operational platform.
EMCAS, headquartered in Exeter, Devon, provides services to consumers who are unaware, or unwilling, to claim redress for losses suffered as a result of malpractice by institutions when selling and providing financial products and services, many of whom come from economically deprived backgrounds. The Company provides claims services across a broad spectrum of financial products including payment protection insurance, mortgage endowments, packaged bank accounts, savings and investments, and pensions. Since its establishment in 2003, the Company has successfully claimed £518 million in compensation for over 740,000 customers.
James Scarth, Joint-MD, commented, “Acquiring EMCAS is a unique opportunity for Richard and me to implement our growth plan and expand the business in the UK. We are so glad to partner with Praesidian Capital, whose investment background and expertise will help us further our mission to provide diversified and innovative products to our deserving consumers who have been affected by malpractice.”
Christian Heidl, Partner of Praesidian Capital Europe, added, “EMCAS is a leader in its sector with systems and processes in place to take advantage of a changing market. We are excited to partner with a strong management team that can drive change and growth for the Company in years to come.”
According to Jason Drattell, Founder of Praesidian Capital, “We are pleased to welcome EMCAS to our portfolio of companies. EMCAS is Praesidian Capital Europe’s eighth investment in the Fund, and we are excited about the opportunity to provide support for this business going forward.”
About EMC Advisory Limited
Headquartered in Exeter and established 10 years ago, EMCAS is a leading claims management company (“CMC”) providing services to consumers who are unaware, or unwilling, to claim redress for losses suffered as a result of malpractice by institutions when selling and providing financial products and services. The Company has managed claims for over 740,000 clients who have received £518 million in compensation. The range of services cover financial products including payment protection insurance, mortgage endowments, packaged bank accounts, savings and investments, and pensions. The Company operates from four sites in Devon and Somerset and currently employs 227 staff. The Company is a founding member of the Professional Financial Claims Association.
About Praesidian Capital Europe
Praesidian Capital Europe is an innovative private investment firm focused on providing senior and subordinated debt along with growth capital to established lower middle market businesses in the United Kingdom, Germany, and selectively in Northern Europe. Established in 2013 and based in London, Praesidian Capital Europe invests in private small and mid-sized companies, often in connection with management buyouts, recapitalizations, or refinancings. Praesidian Capital manages nearly $1 billion in committed capital through various funds. For more information, visit www.praesidian.com.
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