PAG backs Home Credit for expansion in China

Home Credit, founded in 1997, provides consumer loans to retail customers with little or no credit history. The group currently has a presence in 11 countries across Central and Eastern Europe, Asia and the US, serving over 76 million customers through a distribution network comprising 308,703 points of sale.

The company is already well established in China with more than 178,000 points of sale nationwide, serving around 13.2 million clients. The country represents Home Credit's largest and fastest-growing market with EUR7.5 billion ($8.66 million) in total assets.

The group’s majority shareholder is Netherlands-based PPF Group, an international financial services company which also has business interests in telecommunication and real estate. Jiří Šmejc, chairman of the board and CEO at Home Credit, owns 11.38% of the company.

Following the new investment, PAG Capital will help Home Credit forge alliances with strategic partners in China with the ultimate objective of building scale towards an IPO of the local entity within five years.

“We are very pleased to form a partnership with one of the world’s most innovative consumer finance providers. We are happy to be able to contribute our knowledge in the China market to help Home Credit further grow and better serve its customers,” Weijian Shan, group chairman and CEO of PAG, said in a statement.

PAG is currently investing its second pan-Asian fund, which closed at $3.66 billion at the end of 2015. Last week, it led a Series C round of funding worth $118 million for Chinese credit services provider Dashu Finance in conjunction with Primavera Capital.

The Home Credit transaction is subject to regulatory approval.

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• Topics
• Greater China
• Financials
• Consumer
• Expansion
• PAG
• Financial Services
• Growth capital