Client:
Leading Private Equity Fund
Credit Risk Review of Specialist Lender
Project Length:
3-4 Weeks
Personnel:
Director, Principal and Analyst Team
Background
- A private equity firm was interested in investing in a UK specialist fintech lender
- They needed to assess the capability of this business against a quickly evolving market to understand the credit risk processes and the scope for growth
- With the business itself changing quickly, the client needed to fully understand the dynamics and drivers in the business
Engagement
- The Broadstone Credit Risk team (formerly Vestigo) undertook a full credit risk review, understanding the real strengths and weaknesses of the innovative fintech business model
- This was supplemented with detailed ground-up data tape analysis to assess real-world performance
- The review identified clear areas of opportunity and scope for driving further competitive advantage
- In addition, this highlighted some important process gaps, which were relatively simple to fix but if unchecked risked FCA censure alongside increased risk of serious credit losses
