Close Brothers

Close Brothers Group acquires specialist lender

Close Brothers Group PLC has announced its acquisition of Novitas Loans.

The Salisbury-based provider of loans to the legal sector will now become part of Close Brothers Invoice Finance and Rentals. 

The acquisition is expected to strengthen the merchant banking group’s existing offering, which includes professional indemnity funding, VAT and practice loans.

Novitas will bring knowledge of the legal sector and will retain all its staff, who will remain based in Salisbury.

“We are committed to growing our market-leading working capital funding proposition both organically and with selective and high-quality acquisitions,” said David Thompson, chief executive of Close Brothers Invoice Finance and Rentals Division. 

“The acquisition of Novitas fits perfectly with this strategy and we are looking forward to working with a strong team of people in an area where we anticipate a strong growth trajectory.”

Novitas provides working capital for law firms as well as loans to their clients purchasing specific legal services. 

The lender also strengthens the balance sheets of law firms. 

Both lenders expect a strong growth in the legal funding sector, where growing strains on cash flow are becoming an increasing impediment to accessing legal services.

Jason Reeves, managing director of Novitas, believed that in Close Brothers it had found the right partner to support it and allow it to unlock its growth potential.

“The company’s experience and approach to doing business complements ours and I know our clients will benefit from the stable funding and lending expertise that Close Brothers brings. 

“We are looking forward to exciting times ahead as we scale up both within the Salisbury area and around the country. 

“The time is right to increase our already strong loan book, and working with Close Brothers will help us with our ambitious growth plans.”

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