TruFin has completed the disposal of its majority equity holding in Vertus Capital, a specialist lender to independent financial advisers (IFAs).

The deal for TruFin’s 53.8% holding is worth a cash consideration of £3.2m and follows the acquisition of Vertus by Enable Partners.

Vertus provides capital to help facilitate the sale and purchase of advice firms. The firm’s facilities are for either one-off or multiple transactions and it can also provide capital in tranches to suit the agreed deal structure.

For the year ending 31 December 2022, Vertus recorded £213,000 of profit before tax and contributed £162,000 of profit before tax to TruFin’s performance for the year. At the end of June this year, the company’s share of Vertus’ net assets and associated goodwill was £3.2m.

TruFin, a financial technology holding company for niche lenders and early payment providers, provides software and lending solutions to businesses across the UK via its companies, Oxygen and Satago.

The group indicated that the proceeds from its Vertus disposal will be used to provide additional working capital for the company and allow for incremental capital allocations to Oxygen and Satago, based on return on investment expectations.

Vertus CEO, Matt Marais, said: “We would like to thank James and the TruFin team for their support and the wise counsel they have provided during their time as a strategic partner to Vertus. The acquisition by Enable will provide us with the investment to support the next phase of our exciting growth plans.”

TruFin also confirmed that Watrium AS, a 22.8% shareholder in Vertus, has co-invested in Enable, alongside Explore Equity II SCSp as part of the transaction, taking a 48.89% stake in Enable. Watrium is also a minority LP investor in Explore.

TruFin CEO, James van den Bergh, added: “The disposal of Vertus, at an attractive valuation, simplifies and focuses the TruFin business. The sale proceeds further strengthen TruFin’s robust balance sheet as we look forward to continued momentum at Oxygen, Satago and Playstack.

“It has been a pleasure to work with Matt Marais and his team over the last few years. Through hard work and entrepreneurship they have succeeded in building a strong brand as a niche capital provider to the IFA community, which will act as a springboard for their exciting expansion plans. We wish Matt, Enable and Watrium all the best for the future.”

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