LSL teams up with Pollen Street on £200m broker business
LSL Property Services has struck a £200m joint venture with investment manager Pollen Street Capital to form a new mortgage broker.
Pivotal Growth will have at least £200m in debt and equity to finance acquisitions as part of a “buy and build” strategy. Pollen Street is committing £62.4m, while LSL is committing £33.5m.
“The mortgage lending market is highly diverse, growing quickly, resilient and dominated by intermediaries,” LSL said.
LSL Property Services has struck a £200m joint venture with investment manager Pollen Street Capital to form a new mortgage broker.
Pivotal Growth will have at least £200m in debt and equity to finance acquisitions as part of a “buy and build” strategy. Pollen Street is committing £62.4m, while LSL is committing £33.5m.
“The mortgage lending market is highly diverse, growing quickly, resilient and dominated by intermediaries,” LSL said.
“Across a fragmented market, LSL has identified a potential pipeline of over 50 larger firms which could be grown further with the benefits offered by Pivotal and the initial strategy will focus on these larger businesses, thereafter targeting smaller firms.”
The company will be led by chief executive Simon Embley, who will leave his role as LSL’s chairman later this month. Jane Cross, chief risk officer for LSL’s Primis network, will be chief operating officer, with David Copland, LSL’s director of mortgage services, strategy and business development director.
Other directors will include LSL chief executiveDavid Stewart and Pollen Street partner Ian Gascoigne.
LSL’s Primis network accounted for £32.6bn, or 9%, of the UK’s purchase and remortgage market in 2020.
The joint venture partners expect to exit the business over three to six years.
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