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STAR Asset Finance announces the acquisition of Ignition Credit Plc

1 April 2015

STAR Capital Partners (“STAR”), a leading European fund manager, announces today that it has acquired Ignition Credit plc (“Ignition” or the “Company”) via STAR Asset Finance Limited (“STAR Asset Finance”), a company established to consolidate independent asset finance providers across the UK. Ignition represents the third acquisition by STAR since its inception in July 2014.

A unique element of the strategy is to provide owners of asset finance businesses with the opportunity to take an equity participation in the longer term growth and value creation associated with a much larger asset finance entity which has balance sheet strength, critical mass and economies of scale. Through STAR’s diversified investor base and debt facilities, the vehicle has significant levels of additional capital available to invest. The long term intention of STAR Asset Finance is to create a broader funding platform for the SME market, which could include a peer-to-peer lending capability.

Ignition is a leading independent provider of asset and vehicle finance in South West England. Its core activity is the provision of hire purchase and leasing facilities to SMEs. One of Ignition's strengths is that it has the ability to act as a principal lender whilst having long-standing relationships with a large number of funders. This allows the Company to provide a wide range of competitive financing packages to its customers. Ignition arranges financing for all types of assets ranging from plant and machinery to vehicles and business equipment. Financings range from £1,000 to £1 million per transaction.

The Company will continue to be run by its existing management team consisting of Alan Tutte, Steve Hunt and Paul Caunter. The three Directors have been working together successfully for many years and have a deep understanding of the markets they operate in. As part of the transaction, Alan, Steve and Paul will become investors in STAR Asset Finance.

Alan Tutte, Managing Director of Ignition, said:

“By being able to arrange finance quickly and at competitive terms, we have been able to establish Ignition as the leading independent provider for asset and vehicle finance in the South West. Today, over 70% of our business is generated from existing customers or customer referrals. We look forward to being an active partner in STAR Asset Finance where I believe Ignition will play an important role in realising the group’s strategy.”

Today’s announcement provides another example of STAR’s strategy to acquire attractive businesses for future growth in partnership with existing management.

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