A brand new funding automobile based by considered one of Britain’s most outstanding enterprise capitalists has swooped to purchase a stake in Atom Financial institution, the digital-only lender.
Metropolis sources stated that Lee Rochford, the lender’s chairman, had notified buyers in regards to the plan in a memo in current days.
Cash newest: I’ve earned 1000’s recognizing deserted properties – that is the way you do it
If accomplished, it can see Sanjiv Somani, who performed a essential function within the launch and fast progress of Chase UK, the digital financial institution owned by JP Morgan, handle the stake in his capability as a associate at Lexham, in response to sources.
Mr Somani was additionally instrumental in JP Morgan’s £700m buy of Nutmeg, the funding platform, in 2021.
The deal would add Lexham to a share register at Atom Financial institution which incorporates BBVA, the Spanish banking big, and Toscafund.
One supply stated Lexham would purchase £3.5m-worth of inventory at a valuation of 40p-per-share, equal to about £400m.
In response to Lee Rochford, Atom’s chair, the value is similar because the final main capital-raise accomplished a yr in the past.
Nonetheless, one financial institution analyst identified that it was lower than half the value at which it raised capital in 2015.
“In light of feedback previously received from shareholders, in particular early-stage, minority shareholders with regard to the ability to liquidate all or some of the shares held by them, the board has agreed to communicate and facilitate the offer to qualifying shareholders but please note that neither the company nor the Board make any recommendation in relation to the offer,” Mr Rochford stated in his memo.
Atom Financial institution was launched within the aftermath of the monetary disaster, however has failed to attain the identical form of progress trajectory as rivals corresponding to Monzo and Starling Financial institution.
In 2021, it started permitting workers to work a four-day week, turning into one of many greatest UK corporations to embark on such a radical shift in its working practices.
The corporate has repeatedly described its funding rounds to buyers because the final earlier than a possible preliminary public providing, though a flotation is unlikely to happen for at the very least a yr.
Atom and Lexham have each been contacted for remark.
