Business Description
- Think Money Group (formerly Gregory Pennington) is a market leading provider of financial debt solutions to over-indebted consumers. The core product offering includes debt management, individual voluntary arrangements and mortgage/loan brokering with ancillary products including bank accounts and insurance
Investment Rationale
- Gregory Pennington was a relatively young, high growth business in 2002 in an emerging market based on increasing consumer debt
- It was a professional, well run company in a sector where regulation was tightening
| Strategy/Value Creation
- Management team was strengthened by the recruitment of John Cope, as chairman, to mentor the young and dynamic senior executive team
- ECI worked with management pre deal to review and implement new OFT regulatory guidelines. Post deal this included the introduction of both financial and regulatory systems to the business
- Diversification of its introducer network including direct customer channels
- Successful product diversification through the introduction of an array of new products including IVAs, loan and remortgage broking and bank accounts
Performance
- Significant and consistent growth across all product lines driven by growth in consumer indebtedness throughout ECI’s ownership period
- Profits grew from £1.8m in 2002 to £10m by 2007
- The investment was refinanced in June 2004, November 2005 and January 2007 ensuring cash was returned throughout the investment period
- Sold to Alchemy Partners in July 2007
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