Seneca Trade Finance, a UK-based stock finance provider for SMEs, has been acquired by iO Finance Partners in a £40m ($53.29m) deal.
The sale marks the departure of Seneca Partners, which supported subsidiary Seneca Trade Partners to become a “leading provider” of trade finance to SMEs in the UK.
Established in 2016, Seneca Trade Partners is based in Manchester and has a team of 12 people, led by directors Chris Divers, Chris Williams, and Mark McGuire.
The business currently manages just under 300 companies, offering a maximum facility of £300,000, with typical loans around £100,000.
Seneca Partners director Tim Murphy said: “Since we backed Chris Divers, Chris Williams and Mark McGuire nearly nine years ago, they have gone on to build the leading provider of Trade Finance to UK SMEs.
“The time is now right for us to exit, and we have no doubt the business will continue to thrive under the new ownership structure, and we wish the team every success in the future.”
Divers said: “Since forming this business, the support from Seneca has been first class and has enabled us to create a business which has become the UK’s leading SME stock funder, allowing businesses to turn inventory into income faster. Joining iO will give us scale, reach, and innovation power. Together, we can enable even more SMEs to access crucial growth capital.”
iO is a newly launched private credit platform that aims to fill a funding gap in the UK market.
Led by CEO Mike Ellwood and group managing director James Shore, iO plans to acquire three alternative finance providers.
In a separate statement, BP Marsh said it has invested £10m in iO, securing an 8% share through a mix of preferred and ordinary shares.
Janus Henderson, an asset manager listed on the NYSE, also co-invested £10m under the same terms.
Commenting on the investment, Shore said: “In response to the increasing difficulty faced by alternative lenders in accessing conventional financial markets, iO will offer a strategic solution to bridge the funding gap that has emerged as high street banks scale back on lending to SMEs.
“iO is creating a one-stop platform exploiting the growing demand in private credit, and our strategic acquisitions will enable us to deliver on both our promises of creating interesting and diversified products to investors, whilst supporting the pressing financing needs of UK SMEs.”
“iO Finance Partners acquires Seneca Trade Finance in £40m deal” was originally created and published by Leasing Life, a GlobalData owned brand.
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