Aldermore Bank is a retail bank which provides financial services to small and medium-sized businesses. It was founded in 2009 and listed on the

London Stock Exchange London Stock Exchange (LSE) is a stock exchange in the City of London, England, United Kingdom. , the total market value of all companies trading on LSE was £3.9 trillion. Its current premises are situated in Paternoster Square close to St Pau ...

in March 2015. It was a constituent of the

FTSE 250 Index The FTSE 250 Index ( "Footsie") is a capitalisation-weighted index consisting of the 101st to the 350th largest companies listed on the London Stock Exchange. Promotions and demotions to and from the index occur quarterly in March, June, Septemb ...

until it was acquired by South African banking conglomerate

First Rand FirstRand Limited, also referred to as FirstRand Group is the holding company of FirstRand Bank, and is a financial services provider in South Africa. It is one of the financial services providers licensed by the Reserve Bank of South Africa, ...

in March 2018.

History

Aldermore was established with backing from

private equity In the field of finance, the term private equity (PE) refers to investment funds, usually limited partnerships (LP), which buy and restructure financially weak companies that produce goods and provide services. A private-equity fund is both a ty ...

company, AnaCap Financial Partners LLP, in early 2009. The acquisition of Ruffler Bank in May 2009 provided Aldermore with its banking licence and an asset finance business which was combined with the commercial mortgage business of Base Commercial Mortgages, a small mothballed operation. AnaCap purchased Cattles Invoice Finance, a factoring business, from

Cattles Cattles Limited was a British consumer finance company based in Batley, West Yorkshire. It was listed on the London Stock Exchange and was a former constituent of the FTSE 250 Index. The company entered liquidation in September 2016. Histor ...

PLC in 2009, and in 2010 the division became part of Aldermore. It raised £62 million of further investment from a consortium of funds managed by

Goldman Sachs Asset Management Goldman Sachs () is an American multinational investment bank and financial services company. Founded in 1869, Goldman Sachs is headquartered at 200 West Street in Lower Manhattan, with regional headquarters in London, Warsaw, Bangalore, Hong ...

, Honeywell Capital Management, and the Ohio Public Employees Retirement System in August 2011 and it received an additional capital investment from

Centerbridge Partners Centerbridge Partners is a multi-strategy private investment firm focused on leveraged buyouts and distressed securities. The firm manages over $32 billion of assets

when it issued a £36 million subordinated bond in May 2012. In 2012 the bank reached its first full year of profits in its third year of operations. Aldermore was recognised as a

challenger bank Challenger banks are small, recently created retail banks that compete directly with the longer-established banks in the UK, sometimes by specialising in areas underserved by the "big four" banks (Barclays, HSBC, Lloyds Banking Group, and NatWe ...

by the media, and launched a successful

initial public offering An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investment ...

in March 2015, with an opening market capitalisation of approximately £651 million. In October 2017 it was announced that Aldermore had agreed to be acquired by South African banking conglomerate

. The deal valued Aldermore at £1.1bn.

Operations

Aldermore provides financial services to small and medium-sized businesses. Its services include retail and business savings and asset and invoice finance, as well as commercial and residential mortgages. The bank offers lending across the following areas: asset finance, invoice finance,

SME SME may refer to: Economics * Small and medium-sized enterprises * Socialist market economy, an economic system of China Organizations Music * SME Limited, UK audio turntable manufacturer * Sony Music Entertainment, US * Spontaneous Music Ensembl ...

commercial mortgages, buy-to-let mortgages and residential mortgages. Its lending activity is largely funded by the deposits it receives from business and personal savers. Aldermore has no branch network but serves customers and intermediary partners online, by phone and face to face through its regional offices. It was also the first bank to offer this service and publishes this customer feedback unedited on its website. The company's board has been chaired by Pat Butler since January 2018. Non-executive directors are Richard Banks, John Hitchens, Harry Kellan, Alan Pullinger, Cathy Turner, Romy Murray, Nicolina Andall and Ruth Handcock.

Affiliations

Aldermore is the sponsor of the National Association of Commercial Finance Brokers (NACFB), and a member of the Council of Mortgage Lenders. Aldermore is a member of the following bodies: the

British Bankers' Association The British Bankers' Association (BBA) was a trade association for the UK banking and financial services sector. From 1 July 2017, it was merged into UK Finance. It represented members from a wide range of banking and financial services. The asso ...

, the

Finance and Leasing Association The Finance and Leasing Association (FLA) is the leading trade association for the UK consumer credit, motor finance and asset finance sectors, and the largest organisation of its type in Europe. Members of FLA include: banks, subsidiaries of ba ...

, the Asset Based Finance Association, the

Council of Mortgage Lenders The Council of Mortgage Lenders was an industry body representing mortgage lenders in the United Kingdom. Its members consisted of banks, building societies and specialist lenders and represented 95% of mortgage lending in the UK. In November 2 ...

and the Intermediary Mortgage Lenders Association.Members list
Retrieved 14 February 2017.

References

External links

* {{Commercial and retail banks in the United Kingdom Banks of the United Kingdom British companies established in 2009 Banks established in 2009 Companies based in Reading, Berkshire