Blue adds mezzanine finance from Insight Investment to an existing warehouse facility

Blue is bouncing back strongly from the impacts of the pandemic. This investment shows confidence in our credentials for carefully managing credit ris

Blue Motor Finance (Blue) has added mezzanine subscriptions from funds managed by Insight Investment to an existing warehouse facility with a leading European Bank. This is the first mezzanine facility that Blue has added to its warehouse funding. It further diversifies the range of funding mechanisms and partners that Blue is working with. Blue’s platform and business model continues to benefit from the confidence of a broad range of blue chip investors. This investment strengthens Blue’s financial position as it continues to grow lending for used cars from its auto dealer network.

The transaction highlights Blue’s continuing commitment to developing its funding platform through furthering longer term relationships with financing partners. Blue’s relationship focused funding approach has enabled it to lend in excess of £1.6bn in loans, supporting over 150,000 customers, and is underpinned by long term consistency and prudency in managing credit risk and delivery of diversified loan portfolios with relatively low average loan sizes, short term lengths, good security and predictable low default rates.

Tiku Patel, CEO of Blue Motor Finance commented “We are delighted to be able to partner with Insight Investment on this significant financing and we look forward to further developing our relationship for the longer term. Blue is bouncing back strongly from the impacts of the pandemic. This investment shows confidence in our credentials for carefully managing credit risk, delivering continued predictable performance, and further growing our business going forward.”

Shaheer Guirguis, Head of Secured Finance at Insight Investment, added “This facility follows the continued expansion of our franchise which allows us to invest on behalf of our clients in what we believe is an attractive product and asset class, whilst providing growth capacity on the warehouse side to a sponsor with an established public program. We look forward to the growth of our partnership with Blue and the many possibilities it offers.”

Blue provides loans to consumers for used cars through dealers. Remarkable growth has led to Blue being ranked on the Financial Times’ 1,000 Fastest Growing Companies in Europe (FT1000) for 3 consecutive years, topping the list in 2019. Since start up in 2015, Blue has lent more than £1.6b to more than 150,000 customers.

Blue provides its introducers and customers with outstanding service based on technological innovation and the use of data and analytics. Blue is one of the most flexible and advanced direct lenders in the market. It offers loans to a very broad range of customers, fast decisions and great convenience.

Insight Investment is a leading asset manager focused on designing investment solutions to meet its clients’ needs. Founded in 2002, Insight’s collaborative approach has delivered both investment performance and growth in assets under management. Insight managed £741.9bn of assets as of

30 June 2021 across its core liability-driven investment, risk management, liquidity management, fixed income and credit capabilities.1 Insight Investment is owned by BNY Mellon, a global leader in investment management and investment services with $2 trillion in assets under management.

More information about Insight Investment can be found at: www.insightinvestment.com

1 As of 30 June 2021. Assets under management (AUM) are represented by the value of cash securities and other economic exposure managed for clients. Figures shown in USD. FX rates as per WM Reuters 4pm spot rates. Reflects the AUM of Insight, the corporate brand for certain companies operated by Insight Investment Management Limited (IIML). Insight includes, among others, Insight Investment Management (Global) Limited (IIMG), Insight Investment International Limited (IIIL), Insight Investment Management (Europe) Limited (IIMEL) and Insight North America LLC (INA), each of which provides asset management services.