£20m facility to promote VFS Legal Funding expansion
PRESS RELEASE FOR IMMEDIATE RELEASE
VFS is a fresh thinking company that provides innovative finance solutions specifically to the legal sector. From inception just over 4 years ago and funded by a mixture of equity, loan notes and P2P funds via Archover, VFS has built a strong portfolio of quality receivables across a range of law firms.
On the back of the growing loan book and increasing demand, VFS took the view that the time was right to work with a bank that shares its vision and recognises the opportunity that exists. Working with Asgard Partners to put the correct structure together, we are delighted to confirm that we have now secured an initial facility of up to £20m from OneSavings Bank (OSB) to finance further growth and development. In addition, we have significantly increased our capital base from both existing and new investors as well as introducing a strong level of new mezzanine funding which, in conjunction with the OSB facility, enables VFS to reduce its costs whilst positioning the company to maximise the growth of its business.
Norman Kenvyn, VFS Founder and CEO, added: “This initial facility from OSB in conjunction with our strengthened capital base will enable VFS to move forward at a more rapid rate and to help fill the funding gap for our clients in the legal profession. Our unique product range is regulatory compliant for the law firm and we are now ideally positioned to accelerate our growth and further develop our reputation as a company that delivers. We are very optimistic about the future.”
Speaking on behalf of OneSavings Bank, Steve Attree, Head of Secured Finance, said: “We are delighted to be involved with VFS and provide a competitive funding structure that should enable VFS to increase its profitability and take advantage of the growing market. We are pleased to have the opportunity of working closely with Norman and his team and supporting the continued expansion of the business.”
Commenting on the deal, Angus Dent, ArchOver’s CEO,said: “From our point of view thisis a brilliant outcome. We were there for VFS in 2014 and our innovative funding provided the appropriate solution for VFS to expand. We are pleased because it supports our original assessment that VFS was a solid company worth backing. It is also a perfect illustration of how P2P crowdlending should work. We have fulfilled our role for both borrower and lenders. Thisis a case where everyone wins.”
Stuart Stevens of Asgard Partners, corporate finance advisers to VFS, noted: “With the backing of substantial capital and funding, VFS is now ideally placed to build on its excellent market position and take the business to the next level.”
For further information, please contact:
Norman Kenvyn. Founder and CEO
D: 020 8315 6522