Blue Motor Finance has added mezzanine subscriptions from funds managed by Insight Investment to an existing warehouse facility with a leading European Bank.
It is the first mezzanine facility that Blue has added to its warehouse funding, further diversifying the range of funding mechanisms and partners that the firm is working with.
Blue’s platform and business model continues to benefit from the confidence of a broad range of blue chip investors.
The investment strengthens the company’s financial position as it continues to grow lending for used cars from its auto dealer network.
The transaction highlights Blue’s continuing commitment to developing its funding platform through furthering longer term relationships with financing partners.
Blue’s relationship focused funding approach has enabled it to lend in excess of £1.6bn in loans, supporting over 150,000 customers.
It is underpinned by long-term consistency and prudency in managing credit risk and delivery of diversified loan portfolios with relatively low average loan sizes, short term lengths, good security and predictable low default rates.
Tiku Patel, CEO of Blue Motor Finance, said: ‘We are delighted to be able to partner with Insight Investment on this significant financing and we look forward to further developing our relationship for the longer term.
‘Blue is bouncing back strongly from the impacts of the pandemic.
‘This investment shows confidence in our credentials for carefully managing credit risk, delivering continued predictable performance, and further growing our business going forward.’
Shaheer Guirguis, head of secured finance at Insight Investment, added ‘This facility follows the continued expansion of our franchise which allows us to invest on behalf of our clients in what we believe is an attractive product and asset class, whilst providing growth capacity on the warehouse side to a sponsor with an established public program.
‘We look forward to the growth of our partnership with Blue and the many possibilities it offers.’