Partner Article

Close Brothers merchant bankers has acquired a legal loans provider

Historic merchant banking group, Close Brothers, has announced the acquisition of a Salisbury-based provider of loans to the legal sector.

The acquisition of Novitas, a specialist lender to law firms and the legal profession, will see the business incorporated into Close Brothers Invoice Finance and Rentals, with all its staff and senior management retained at its Salisbury base.

The deal will expand the merchant banker’s expertise in the legal sector, where it currently offers professional indemnity funding, VAT loans and practice loans, and is set to capitalise on the growing cash flow strains currently placed on law firms.

Close Brothers itself has been operating since the 1870s when it was setup by William Brooks Close to provide farm mortgages to Iowa farms as well as financing Alaska’s first railway line.

Since then, the banking group has grown to encompass a wide variety of verticals, including business and individual lending, asset management services and securities.

David Thomson, Chief Executive of Close Brothers Invoice Finance and Rentals Division, commented: “We are committed to growing our market-leading working capital funding proposition both organically and with selective and high-quality acquisitions.

“The acquisition of Novitas fits perfectly with this strategy and we are looking forward to working with a strong team of people in an area where we anticipate a strong growth trajectory.”

Jason Reeve, Managing Director of Novitas, added: “In Close Brothers we have found the right partner to support our firm and allow us to unlock our growth potential.

“The company’s experience and approach to doing business complements ours and I know our clients will benefit from the stable funding and lending expertise that Close Brothers brings.”

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