Evolution Funding, the UK’s largest used auto finance platform, has secured investment from Carlyle, a global investment firm. They are investing alongside Evolution’s founders and existing investor LDC, who will retain a minority stake. The terms of the transaction have not been disclosed.
In the last twelve months, Evolution has enabled nearly 150,000 financing transactions with a total platform volume in excess of £2 billion.
Equity for the investment will be provided by Carlyle Europe Technology Partners (“CETP”) V, a €3 billion fund which invests in technology companies across Europe.
The business has made two acquisitions in recent years: Click Dealer in July 2021 and Motion Finance in May 2023.
Fernando Chueca, managing director of the CETP investment advisory team, said: “In Evolution, we identified the opportunity to partner with an advanced technology platform in the UK’s fragmented market for used car finance, which we believe is an attractive and growing segment.
Lee Streets, founder and CEO of Evolution Funding, said: “We believe Evolution holds a unique position in the UK’s motor finance market, built upon capturing the opportunity to provide a differentiated, technology-based platform which helps both lender and dealer partners navigate change from digitisation and regulation.”
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Lawrence Dean, Partner and head of south at LDC, added: “Lee and his team have almost quadrupled the total volume of advances Evolution’s platform enables in the last four years; a significant achievement given the uncertainty in the market.
“We look forward to continuing to work together to support Evolution’s future growth plans.”