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

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

The transaction is topic to FCA approval.

Based mostly 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 group of over 500 folks and helps over 4,000 vendor forecourts, together with Marshall, Sytner Group and Belief Ford, and main online-only used automotive sellers reminiscent of Cinch and Cazoo.

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

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

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

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

Fairness for the funding will likely be offered 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 group, mentioned: “In Evolution, we recognized the chance to accomplice with a complicated know-how platform within the UK’s fragmented marketplace for used automotive finance, which we consider is a sexy and rising section.

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

“We sit up for working with Lee and the complete group at Evolution.”

Lee Streets, founder and chief government of Evolution Funding, mentioned: “In Carlyle, we’ve got discovered the perfect accomplice to proceed our development journey, given their expertise rising and scaling entrepreneurial know-how companies like ours.

“We want to thank the group at LDC for his or her assist over the past 4 years, funding within the improvement of our know-how 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 rework the motor finance market.”

Lawrence Dean, accomplice and head of South at LDC, added: “Lee and his group have virtually 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 put money into its know-how, taking part in a number one function within the digitisation of the motor finance market and creating revolutionary digital finance options which can be shaping the trade and buyer expertise. We sit up for persevering with to work collectively to assist Evolution’s future development plans.”