NewDay Group, one of the UK’s largest privately owned consumer credit providers, is drawing interest from major global financial players including Pimco, KKR, and a consortium led by Bain Capital and Centerbridge Partners, as its private equity backers explore a potential £1.7bn exit.

Owned by Cinven and CVC Capital Partners, NewDay is fielding preliminary offers for either the full business or its loan book, according to sources close to the process. Formal bids are expected in the coming weeks, with options under consideration including a trade sale or a stock market listing.

NewDay provides credit cards and digital lending solutions to around four million customers. It operates both direct-to-consumer offerings—such as Bip, the UK’s first digital-only credit card—and retail finance partnerships, including with Argos and John Lewis. Last year, NewDay acquired the Argos store card business from Sainsbury’s for £720m and is now rolling out a new digital Argos-branded credit product.

The company is chaired by former Barclays deputy chairman Sir Mike Rake and led by CEO John Hourican, previously of RBS and Bank of Cyprus. Barclays has reportedly been retained to advise on the sale or IPO process, with additional banks expected to join the syndicate if a listing proceeds.

NewDay reported a 36% increase in new customer acquisitions in the first half of the current financial year, with arrears levels stabilising at pre-pandemic norms. Its diversified product mix and digital-first approach have helped the firm capitalise on rising demand for point-of-sale finance and Buy Now Pay Later options.

The potential sale continues the trend of high-profile private equity activity in consumer finance, as firms look to monetise mature portfolio assets amid stabilising credit conditions and renewed interest in alternative lending platforms.

Source: Sky News