P2P platform valuations

News here on PB, which might interest current & possible future equity holders in P2P platforms. Quick glance suggests a valuation of £25–35m (blended £28.3m) for a platform that has originated £132m since 2012. That’s a 0.21x multiple for an operator that is clear No 2 in its own invoice finance segment (c. 14% share & 6 times smaller than the leader MI) & reasonable mileage behind it in p2p terms.

Could be an interesting benchmark for AC. Both have insto backing, an almost identical origination over a similar period, & a similarish size wrt the segment leader (FC circa 10x bigger than AC vs MI 6x bigger than PB), the main difference being AC’s smaller market share (4%) due to the much larger number of competitors operating in its segment(s).

No idea as to PB’s (or AC’s) profitability, which seems to be the invisible elephant on p2p evaluations. samford71 or other MI/PB investors might be able to shed some light on IF space prospects & comparative relevance to AC. The zero default rate over last 16M mentioned at the bottom stands out.


29, July 2016 – Platform Black has today announced that its majority shareholder – Sancus BMS Group has increased its shareholding in the firm demonstrating a further commitment to the future of its business in the UK funding market.

The move sees Sancus BMS Group make a further investment in Platform Black through the cash purchase of an additional 10% of Platform Black shares from minority investors, taking its holding from 83.93% to 93.93% at a £3.5m valuation.

In addition to this, Sancus BMS Group, which is wholly owned by GLI Finance Plc, has entered in to an agreement on 28th July 2016 with a consortium of high net worth private investors (“Minority Investor Group”), whereby the Minority Investor Group will lend up to a maximum of £50m through Platform Black Limited and buy 10% of Platform Black Limited at a £3.5m valuation for cash, thus reducing Sancus BMS Group’s holding back down to 83.93%. The Minority Investor Group also has the option to acquire an additional 20% of Platform Black Limited at a £5m valuation in the future.

The move follows recent activity brought about by the appointment of Andy Whelan as CEO of GLI Finance, in December 2015. His objective of simplifying the group’s structure and increasing levels of commercial operating and financial integration resulted in an inter-company transfer of its holdings in Platform Black to the newly formed Sancus BMS Group Limited.

Caroline Langron, Managing Director of Platform Black said; “This demonstrates the continued robust support from both GLI Finance and Sancus BMS Group over recent months for Platform Black which is now a key part of their portfolio. The injection of £50m into the business by the Minority Investor Group enables us to boost further our capability to fund the demand we are seeing from UK businesses looking for flexible sources of finance. The change in shareholding will only serve to strengthen the business as we seek further growth. Being part of a larger group brings many benefits to our clients as we will be able to draw on the resources of our shareholders and the wider Sancus BMS Group companies to ensure that we continue to satisfy our clients financing requirements.

Platform Black has seen a significant period of positive growth with in excess of £132m of funding provided to businesses seeking flexible and competitive finance for its businesses. In the past 24 months, Platform Black has changed its leadership and invested in building robust risk management skill set and processes in to the business which has delivered a zero default rate on their transactions over the last 16 months.