UK Banking & Payments Platform I United Kingdom
A leading universal bank undertook the strategic optimisation and partial divestiture of its UK merchant acquiring business, culminating in a majority stake sale to a large global asset manager.
Pavel Partners was engaged on an advisory basis to contribute commercial research and market-mapping inputs that helped inform the standalone growth narrative for the asset, alongside other advisors working on the transaction. These inputs were used to support internal evaluation and stakeholder discussions around the partnership structure and value-creation plan.
Following a strategic review and transaction process, a new standalone entity was established, with the incoming investor brought in as a growth-oriented partner while the bank retained a significant ongoing commercial relationship. The deal structure included a substantial capital injection to support modernisation and expansion.
Key client objectives met:
Improved capital efficiency through the separation and restructuring of a capital-intensive business line.
Supported the articulation of a standalone growth thesis appropriate for long-term institutional capital.
Preserved commercial alignment to ensure continuity of service for the corporate and SME client base.
Supported carve-out planning by contributing granular market perspective to complement internal performance data.
Enabled a modernisation pathway through dedicated growth capital.