LDC buys into debt group

Lloyds’ buyout arm has become a major investor in Bluestone Group, a UK-headquartered, debt-focused financial services group.

LDC, the mid-market focused buyout arm of Lloyds Banking Group, has acquired a significant stake in Bluestone Group. It joins existing investor Macquarie Bank as a major shareholder in the business.

Bluestone is a financial services business focused on loan origination, consumer loan purchasing and debt servicing, LDC said in a statement confirming the deal.

The company was established in Australia in 2000 by Alistair Jeffrey and initially focused on residential mortgage lending in Australia and New Zealand. In recent years, management have sought to diversify into capital and asset management, and broaden its geographic footprint.

Those moves saw its headquarters move to Cambridge, UK and it expand into the European market. It has diversified into the non-performing SME loan market as well as debt collection and loan servicing.

It is split into two units. Bluestone Capital Management raises and invests capital in financial assets, funding new loans in Australia including non-conforming residential mortgages, specialist consumer automotive loans, and SME asset finance, as well as the acquisition of NPL portfolios.

Bluestone Asset Management manages the group’s financial and real estate assets, including £1.6 billion ($2.6 billion; €1.9 billion) of loans from its platforms in the UK, Ireland and Australia. Its core revenue streams are loan servicing, software as a service and debt collection.