Victoria, which is partly owned by its panel of packagers and directly benefit from its success, and Venturion Capital, the US-based venture capitalist, has sold a tranche of business which it has built up since launch in May 2005 at a very attractive premium. This was deemed to be a particularly important transaction, as it represents the first of a series of similar sales from the company.
Kevin Hillgren, Victoria’s CEO, said: “Our packagers have helped us produce this valuable book and now they will participate in the profits. We pay market level proc fees and our packager partners are incentivised to provide quality business from both the borrowers and the lenders perspective.
“Our borrowers’ satisfaction with our products and service is evidenced by the fact that our loan book performs better than other lenders. Our business model produces loan pools with higher values than is typical in the sector, and when we realise the profits, we share them with our packagers. No other lender has our value sharing proposition - for the others it has typically been a 'take the proc fees and run' approach.”
Victoria emphasises it has grown its business through a “service foremost” model and that this is demonstrated by its 24 hour turnaround guarantee, its market leading product criteria and competitive lending rates.
Matt Grayson, chairman of Victoria added: “This is a very significant transaction for stakeholders in Victoria, not least as it is always hardest to execute the first such deal. It is intrinsic to our longer-term strategy and I am confident that we shall be in a position to announce a second, much larger, pool sale in the near future.”
