Global private equity firm Advent International has acquired a majority stake in GFKL Financial Services, from a consortium of institutional investors for an undisclosed sum.
As part of the transaction, Advent will participate in a capital increase to strengthen GFKL’s equity base and to stimulate further growth.
German-based GFKL is a financial services provider of debt collection and debt purchase. It currently services receivables in excess of €23bn.
The debt collection market is said to have strong growth expectation driven by increasing outsourcing levels in many sectors. With 700 small to medium-sized debt collection companies and the top three representing 30% of the market share, the highly fragmented German market is believed to offer attractive consolidation opportunities.
Managing partner of Advent International’s Frankfurt office and co-head of Europe, Ralf Huep, said: “We will continue to support GFKL by providing the required capital, as well as the additional sector know-how. These two key factors will significantly contribute to strengthening GFKL’s future performance and to reposition the company going forward.”