Under the new deal, VPC Speciality Lending will own around 49% of Borro and the remaining 51% of the equity will be held by other vehicles managed by Victory Park Capital and Borro’s senior management team.
VPC will provide Borro with a credit facility of up to $10m. VPC first became involved with Borro when it provided a credit facility in February 2014.
Borro, founded by Aitken in 2009, loans between £5000-5m against the value of luxury items including fine art, jewellery, watches, fine wine, and classic cars.
As part of the new investment, VPC partners Tom Welch and Gordon Watson have joined Borro's board of directors. Earlier this year John Allbrook joined as executive chairman and CEO.
"Fragmented and niche market"
Allbrook said: "Despite several business and leadership shifts over the past two years, we feel confident that with VPC’s partnership, we can capitalise on what remains a fragmented and niche market that continues to be underserved."
The financial restructuring required change of control approval from the Financial Conduct Authority (FCA) earlier this month and has now completed. As part of the restructuring a subsidiary, Borro Group Holdings, was placed into administration and PwC was appointed administrator. However Borro’s trading companies and assets remain solvent and are not effected by this move.
