Citigroup (NYSE: C) has sold a portion of its Citi-branded international credit card portfolio to SAV Credit netting the company £1 billion in revenue, according to a report from Alt Assets.
Under the terms of the deal, U.K. credit-card issuer SAV Credit acquired £835 million in customer account balances and 539,000 credit card accounts, more than doubling its total number of customers.
James Corcoran, SAV Credit CEO, said, “We are delighted to conclude the acquisition of the Citi Cards portfolio. The transaction is evidence of our ongoing commitment to growth in the UK credit card market, and our strong reputation in the effective management of credit risk despite economic cycles.”
SAV Credit is owned by private equity firms Palamon Capital Partners, Electra Private Equity and Morgan Stanley Alternative Investment Partners. The company was established in 2011 with the goal of offering specialized credit cards for individuals not typically targeted by mainstream financial providers. SAV Credit acquired HSBC’s marbles credit card business in 200.
The funding for the purchase of Citigroup’s credit card assets was undisclosed, however Alt Assets reported that the funding for the acquisition came from new investment partner Värde Partners, a credit-focused private equity firm, as well as Palamon, Electra and Morgan Stanley AIP.
