September 12, 2025 | KKR AGREES TO ACQUIRE NEWDAY’S CONSUMER CREDIT PORTFOLIO FROM CINVEN AND CVC

London, 12 September 2025

Cinven and CVC have agreed to sell NewDay's portfolio of consumer credit receivables to private credit funds and accounts managed by KKR, a leading global investment firm.

The transaction effectively separates NewDay's credit balance sheet from NewDay's origination and servicing business ("NewDay Operating Group"). KKR will enter into a multi-year forward flow agreement with the NewDay Operating Group in respect of its future origination. The underlying portfolios of consumer credit receivables originated by NewDay (the "Portfolios") will continue to be operated and serviced as they are today by the NewDay Operating Group. Cinven and CVC will remain invested in the NewDay Operating Group, with KKR also investing in it as part of the transaction.

This highly innovative transaction brings together NewDay's proven origination and servicing capabilities with KKR's proven expertise in asset-based finance. The combination is expected to enhance NewDay's ability to scale, broaden its reach, and continue delivering market-leading innovative credit and technology solutions to UK consumer and merchant partners.

The Portfolios will continue to be funded via NewDay's existing securitisation structures. The NewDay Operating Group will continue to service its customers as it does today and remains committed to delivering exceptional customer outcomes across the Portfolios.

NewDay is a highly profitable and cash-generative business and has demonstrated consistently strong growth. In its half year results for the six months to 30 June 2025 NewDay reported a 30% increase in underlying profit before tax, at £107 million, and a 21% increase in gross receivables, at £5.2 billion. In February 2025, NewDay acquired economic ownership of the Argos Financial Services store card portfolio, with £834 million of gross receivables and 2.2 million customers, which will be included in this transaction. NewDay's existing retail customers and merchant and technology partners will not see any changes as a result of the transaction.

Completion is anticipated to occur at the end of September 2025 subject to customary closing conditions.

John Hourican, CEO of NewDay, commented:"We are pleased to welcome KKR as a new shareholder and strategic partner. This transaction is a strong endorsement of NewDay's platform, people, and performance, and reflects KKR's confidence in our ability to deliver sustainable growth.

We also want to thank our shareholders Cinven and CVC, who have been exceptional partners since their investment in the business in 2017. Together we have built NewDay into a leading provider of consumer finance across multiple brands in the UK, serving c. 5.9 million customers."

Peter Rutland, Managing Partner at CVC, said: "We are pleased to have partnered with NewDay, supporting the company's impressive growth journey. During this time, NewDay has become the UK's leading provider of digital embedded finance and credit card solutions, forged key partnerships with top British retailers and developed cutting-edge, next-generation proprietary technology."

Rebecca Hunter, Senior Principal at Cinven, said: "Together with the management team, we identified an important yet underserved area of the market where NewDay had leading underwriting expertise. Throughout our ownership, NewDay has continued to pioneer innovation in credit, whilst also demonstrating a resilient track record. We are proud to have played a role in NewDay's success and are confident in the continued growth trajectory of the business."

Varun Khanna, Partner and Co-Head of Asset-Based Finance at KKR, added:"We are pleased to enter into this strategic partnership with NewDay to support their continued growth and innovation in the UK consumer credit market. We also look forward to collaborating with Cinven and CVC, whose backing has helped establish NewDay as a leading provider of consumer finance. Through our Asset-Based Finance strategy, KKR is well-positioned to support NewDay's expanding multi-brand platform as they deliver responsible credit solutions to millions of UK consumers."

KKR's investment comes from KKR-managed credit funds and accounts via the firm's Asset-Based Finance strategy.

Barclays Bank PLC served as financial advisor and Clifford Chance LLP served as legal advisor to NewDay. Morgan Stanley & Co. International plc served as lead financial advisor and structuring agent, Societe Generale, London Branch served as lead structuring advisor and provided financial advice, KKR Capital Markets LLC served as arranger, and Latham & Watkins LLP served as legal advisor to KKR.

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About NewDay

NewDay is a leading UK consumer credit provider serving c.5.9 million customers through a multi-brand strategy that includes credit builder products, co-branded credit cards, and embedded finance solutions. Operating across prime and near-prime segments, NewDay offers proprietary and co-branded products through long-standing partnerships with major UK retailers and financial institutions. The company combines deep underwriting expertise with a scalable technology platform to deliver responsible credit solutions and drive sustainable growth. With a strong technology platform and proven origination and servicing capabilities, NewDay drives growth and innovation in the UK credit market.

About KKR

KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR's insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR's investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR's website at www.kkr.com. For additional information about Global Atlantic Financial Group, please visit Global Atlantic Financial Group's website at www.globalatlantic.com.

About Cinven

Cinven is a leading international private equity firm focused on building world-class global and European companies. Its funds invest in six key sectors: Business Services, Consumer, Financial Services, Healthcare, Industrials and Technology, Media and Telecommunications (TMT). Cinven has offices in London, New York, Frankfurt, Paris, Milan, Madrid, Guernsey and Luxembourg. Cinven takes a responsible approach towards its portfolio companies, their employees, suppliers, local communities, the environment and society.

Cinven Limited is authorised and regulated by the Financial Conduct Authority. Cinven Fund Management S.à r.l. is authorised and regulated by the Commission de Surveillance du Secteur Financier. In this press release 'Cinven' means, depending on the context, any of or collectively, Cinven Holdings Guernsey Limited, Cinven Partnership LLP, and their respective Associates (as defined in the Companies Act 2006) and/or funds managed or advised by any of the foregoing. For additional information on Cinven please visit https://www.cinven.com and https://www.linkedin.com/company/cinven/.

About CVC

CVC is a leading global private markets manager with a network of 30 office locations throughout EMEA, the Americas, and Asia, with approximately €200 billion of assets under management. CVC has seven complementary strategies across private equity, secondaries, credit and infrastructure, for which CVC funds have secured commitments of over €260 billion from some of the world's leading pension funds and other institutional investors. Funds managed or advised by CVC's private equity strategy are invested in approximately 140 companies worldwide, which have combined annual sales of over €168 billion and employ over 600,000 people. For further information about CVC please visit: https://www.cvc.com/. Follow us on LinkedIn.