KKR agrees to acquire credit card portfolio

Cinven and CVC have agreed to sell NewDay’s portfolio of consumer credit receivables to private credit funds and accounts managed by KKR.

The transaction effectively separates NewDay’s credit balance sheet from NewDay’s origination and servicing business. KKR will enter into a multi- year forward flow agreement with the NewDay Operating Group in respect of its future origination.

The underlying portfolios of consumer credit receivables originated by NewDay will continue to be operated and serviced as they are at the moment by NewDay
Operating Group. Cinven and CVC will remain invested in the NewDay Operating Group, with KKR also investing in it as part of the transaction.

Completion is anticipated to occur at the end of September 2025 subject to customary closing conditions.

John Hourican, CEO of NewDay, said “We are pleased to welcome KKR as a new shareholder and strategic partner. This transaction is a strong endorsement of NewDay’s
platform, people, and performance, and reflects KKR’s confidence in our ability to deliver sustainable growth.

Peter Rutland, Managing Partner at CVC, said “We are pleased to have partnered with NewDay, supporting the company’s impressive growth journey. During this time, NewDay has become the UK’s leading provider of digital embedded finance and credit card solutions, forged key partnerships with top British retailers and developed cutting-edge, next-generation proprietary technology.”

Rebecca Hunter, Senior Principal at Cinven, said “Together with the management team, we identified an important yet underserved area of the market where NewDay had leading underwriting expertise. Throughout our ownership, NewDay has continued to pioneer innovation in credit, whilst also demonstrating a resilient track record. We are proud to have played a role in NewDay’s success and are confident in the continued growth trajectory of the business.”

Varun Khanna, Partner and Co-Head of Asset-Based Finance at KKR, added: “We are pleased to enter into this strategic partnership with NewDay to support their continued growth and innovation in the UK consumer credit market. We also look forward to collaborating with Cinven and CVC, whose backing has helped establish NewDay as a leading provider of consumer finance. Through our Asset-Based Finance strategy, KKR is well-positioned to support NewDay’s expanding multi-brand platform as they deliver responsible credit solutions to millions of UK consumers.”