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Copper Street Capital Announces the Death of Partner Justin Bull

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Copper Street Capital is deeply saddened to confirm the death of Justin Bull, Operating Partner at the firm, who has passed away unexpectedly from natural causes. He was 60 years old.

Justin was a highly respected figure in financial services, with a career spanning more than three decades in London and Hong Kong. Prior to joining Copper Street in 2016, he spent over 18 years at Barclays, where he held a number of senior leadership roles including Chief Operating Officer of the Global Investment Bank. Justin began his career in futures markets at Union Discount Company and went on to hold senior positions at Morgan Stanley and BZW.

Justin was a pioneer in the digitisation of trading and distribution. He played a central role in building Barclays’ BARX platform and in shaping the bank’s response to industry transformation in the early 2000s. He led distribution efforts in Asia-Pacific, helped navigate the integration of Lehman Brothers, and was known throughout his career for his integrity, judgement and ability to bring people together in complex situations.

Beyond the industry, Justin was a longstanding supporter of charitable and educational causes, including his advisory work with the Sutton Trust and his contribution to cancer research through The Institute of Cancer Research’s Discovery Club.

Jerry del Missier, Founder and Chief Investment Officer of Copper Street Capital, said: “Justin was respected by everyone who worked with him. He was an innovator who saw early on the potential to digitise markets, and his organisational skills were instrumental in the development of Barclays Capital. In the often intense and tribal world of investment banking, Justin stood out as a beacon of fairness and calm. He brought people together, diffused tension with humour, and led with integrity. We worked side by side for nearly 30 years, and so I know that his absence will be profoundly felt both at Copper Street and across the financial services industry. Our thoughts are with Justin’s wife Lucy and his family, to whom he was devoted.”

Justin is survived by his wife Lucy, three adult children and a grandchild.

In lieu of flowers, Justin’s family have asked well-wishers to consider donations to CRIS Cancer, a charity he wholeheartedly supported: criscancer.enthuse.com

Plans for a memorial later this year are underway. Friends and former colleagues who wish to attend are invited to contact Copper Street Capital for further details via: info@copperstreetcapital.com.

European bank M&A fever is in the air, but execution will demand discipline not adventurism

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Please find the latest market commentary from Jerry del Missier, CIO:

Year end results season is confirming that the European banking community has finally returned to rude financial health after its fifteen-year journey in the wilderness.  Capital numbers are solid, large capital repatriations to shareholders have been announced, and as expected, interest in M&A has been piqued.  That an appetite for acquisition has returned with the healthy finances is not surprising, and given the unsettled nature of the banking community it should be welcomed. While we’ve seen a steady stream of transactions in recent years, there is still tremendous scope for consolidation of the sector.

Most markets in Europe still have too many subscale banks that struggle to earn their cost of equity through the business cycle given the increased cost of regulatory compliance.  They also face competition from new entrants that eat into market share (private credit) or erode margins (payment platforms).  In the low growth European economy, improved profitability must come from greater efficiency and cost management and not top-line revenue expansion, given that we are at or near the peak of net interest margin (NIM) growth.  Therefore, the focus of management must remain on improving costs-income ratios and adding scale.  Acquisition should be an important tool in the execution of that strategy.  But in an environment when almost all players are flush with capital and the yield curve has once again become their friend, any immediate vulnerability has disappeared.  Acquisition will require a premium which means disciplined execution becomes critical.

That discipline starts with selection of target.  Up until now we have largely seen in-country deals which have been driven by scale and efficiency.  This is the right path to follow since common business lines are easier to integrate and cultures tend to be similar, which results in a quicker path to enhanced profitability.  Tangible financial results should be the sole justification, not some narrative about building a regional champion or cross-selling additional products through distribution channels.  A deviation from this standard significantly increases the risk of integration and the complexity of the new organization.  “One plus one” never equals three and co-heads rarely result in anything other than half the decisions for twice the cost.

During the long recovery it was easier to remain focused.  The overriding objectives were recapitalization and adoption of new regulatory norms, and shareholders had limited say in the governance of banks.  With the return to financial health and managements’ shifted focus away from cost and capital discipline, boards must ensure that this shift doesn’t result in costly strategic mistakes.  The track record of bank M&A outside of distressed situations is very spotty, with more failures than successes.  And in the absence of a clear regulatory and political framework cross-border deals should be avoided.  There are many advocates in the advisory community and the press, but as was seen with the mooted Unicredit bid for Commerzbank, cross border transactions can very quickly become a political football between two governments.

An opportunity to permanently transform the European banking system through improved strength and profitability was surely missed during the past fifteen years.  It’s true that there were several significant distractions during that time, such as the sovereign debt crisis, but given the intertwined nature of banking and sovereign debt that unfinished transformation will have to be addressed at some point sooner rather than later.  A continued failure to do so threatens the sustainable financial health of the whole Eurozone in the event of future crises.  If, at some stage in the future, fiscal matters are further integrated, then the concept of a banking union may become a reality, and we might have the catalyst for genuine regional consolidation.  In the meantime, the focus should be on creating strong entities at the national level that are resilient and capable of competing against new entrants to financial services.  Having missed the golden opportunity to drive this when it was keeping many players on life support, the ECB (and politicians) should not stand in the way of well-conceived and diligently structured transactions.  A robust economy in the future will require a banking system that’s fit for purpose.

Portfolio company Lantern announces new CEO and Non-Executive Chairwoman

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Copper Street Capital portfolio company Lantern Group announces new CEO and Non-Executive Chairwoman as it looks to next stage of its growth

Today, Lantern Group, a Copper Street Capital portfolio company and one of the UK’s market leading debt purchase and credit management companies with a particular focus on supporting customers in vulnerable situations, announces that it is making changes to its senior leadership team.

Effective 1 November 2023, Denise Crossley will move into a new role of Non-Executive Chairwoman of the Group. Paul Mason will become the new CEO to lead the Group and build on the success of the past nine years.

In that time, Denise has been instrumental in establishing Lantern’s strong brand reputation, acquiring and integrating vulnerable customer management company, Sonex Financial, while driving the growth and profitability of the Group, which is expected to achieve c.£54m in annual revenues, and £12m EBIT by the end of this year. She has overseen the growth of the team to over 250 staff and in excess of 4.5m customer accounts have been acquired. In her new role, she will continue to offer the Board and the senior management team advice and guidance on the development and execution of the Group’s strategy, while continuing to be one of the leading figures in the industry.

Paul is a highly experienced CEO, bringing significant expertise from a career spent growing consumer-focused financial services companies, including at BPO Holdings, the Student Loans Company (SLC), Saga Insurance, Creditfix, and latterly as CEO of Solvere Services, a leading Toronto, Canada based consumer debt business. During his career, Paul has founded a credit management business, held an executive role in a public limited company and, while at SLC, managed the £120bn student loan book, collecting c£2.6bn in annual repayments and managed a £500m portfolio of direct collections via an international panel. He brings particular prowess in consumer credit and scaling businesses, making him a key asset to further accelerate Lantern’s future growth trajectory.

He will work in close collaboration with Denise and CFO Andrew Kirk, and Stefan Russell, Managing Director of Sonex Financial, to ensure Lantern Group will deliver on its ambitious growth plans to be the UK’s leader in credit management, retaining its particular focus on supporting customers in vulnerable situations.

Justin Bull, Copper Street Capital and lead investor in Lantern, said: “Lantern has grown into a strongly performing business, underpinned by a quality team and a clear growth strategy. Today’s announcement will accelerate the next stage of Lantern’s success. The combination of Denise’s institutional knowledge, with Andrew Kirk’s exceptional financial management and Paul’s skillset and knowledge of scaling businesses at pace, delivers an exceptional C-Suite.”

Denise Crossley, incoming Non-Executive Chairwoman at Lantern Group and outgoing CEO, said: “It’s been a fantastic nine years growing the business into the award-winning, diverse and fabulous team it is today. We have ambitious growth targets and the Board and I believe now is the right time to bring in the additional skills needed for our team to scale the business as it enters the next chapter of growth. I want to say a big thank you to our clients, partners and, above all, our employees for all their hard work and I look forward to continuing to help with Lantern’s story in the future.”

Paul Mason, incoming CEO, said: “Lantern’s reputation in the industry is second to none and I look forward to working closely with Denise and the fantastic team she has built to help grow our market-leading offer. I’ve seen from afar how this company helps people, day after day, in often challenging circumstances. It’s an honour to succeed Denise and I look forward to being able to call on her advice and guidance in her new role.”

Copper Street acquires Thistle Initiatives Group Limited

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We are pleased to announce that we have acquired a majority stake in Thistle Initiatives Group Limited.  Please see the press release below.

London, 14 October 2022:

Investment in the regulatory compliance consultancy marks Copper Street Capital’s fifth investment, as the private equity investor widens its portfolio across lower mid-market European financial services.

Thistle Initiatives Group will use Copper Street investment to double in size over the next three years through organic growth and acquisition.

Copper Street Capital, the private equity investor focused on lower mid-market European financial services, has invested in regulatory consultancy group, Thistle Initiatives Group Limited.

Founded in 2012, Thistle Initiatives Group has grown into a multi-award-winning regulatory consultancy, providing expert regulatory advice and support for a vast and varied client base of UK and international firms operating across the spectrum of financial services.

The investment will support the long-term growth of Thistle Initiatives Group, with a goal to more than double in size over the next three years through both organic growth and acquisition. Thistle is well placed to become a leader in the rapidly growing compliance consultancy market, due to its expertise across key areas impacted by structural tailwinds in the sector such as consolidation, the growth of fintech and an increased focus on financial crime and regulatory changes following Brexit.

The transaction marks Copper Street Capital’s fifth investment, as it continues to expand its reach across lower mid-market European financial services. Its wider portfolio includes Lantern, a leading player in the UK speciality finance debt purchase market, One Four Nine Group, an independent UK financial advice and fund management group and Saranac Partners, a private office providing bespoke advice and investment management services to ultra-high net worth clients.

The investment builds on a strong period of activity for Copper Street Capital, having announced last month the successful divestment of its minority stake in Italian mobile payments service Satispay, after initially investing in the company in 2018. Since then, Satispay has seen exceptional growth and become Italy’s largest mobile payments provider.

Jerry del Missier, founding partner of Copper Street Capital, said, “Since launching Copper Street Capital, we’ve continued to invest in exceptional businesses across the spectrum of financial services – so we are pleased to welcome Thistle Initiatives Group into the Copper Street family.

“Having worked with Thistle over the past few years as clients, we have continuously been impressed with their work and the scale of their ambition. We look forward to supporting the leadership team as they continue growing the company into a leader in compliance consultancy.

“The demand for compliance services is increasing in the face of numerous market tailwinds, including significant market consolidation, the growth in financial technology, a higher degree of focus on financial crime, and increased regulator independence as a result of Brexit. Thistle has established itself as an agile multi-disciplinary leader in the sector and is well-positioned to continue capturing market share.”

James Dingwall, CEO and founder of Thistle Initiatives Group, said, “Copper Street’s investment into Thistle Initiatives Group will enable us to accelerate our growth as we look to build Thistle into a market leader in regulatory consultancy, through both organic growth and acquisition. We look forward to continuing to work closely with the team at Copper Street and benefitting from their valuable insight and support.”

Alongside James, Thistle’s senior management team will also include Group Managing Director Sophie Long and joint Chief Financial Officer and Chief Operating Officer, Michael Bellenger.

Justin Bull, Chief Operating Officer and Partner, and Elliot Tahmasebi, Principal, at Copper Street Capital, will also hold seats on the Thistle Initiatives Group board.

Copper Street Capital was supported on the transaction by Proskauer Rose, DLA Piper, PwC, RSM and Oliver Wyman.

Copper Street Capital announces successful divestment of minority stake in Satispay

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We are pleased to announce a successful divestment of our minority stake in Satispay.  Please see the press release below:

The exit comes as Satispay exceeds €1bn valuation.

Satispay has achieved ~800% growth in consumers since Copper Street invested in 2018 at €100m valuation (1).

The deal marks Copper Street Capital’s first significant exit in its private equity portfolio.

The resulting capital will continue to be used to invest in future deals across European financial services sector companies.

London, 28th September, 2022:

Copper Street Capital, the private equity investor focused on the European financial services sector, has divested its minority stake in Italian mobile payments service, Satispay.

The mobile payment service, launched in 2015, simplifies every-day payments for consumers and cuts transaction fees for retailers, helping them transition to mobile payments.

Copper Street invested in Satispay in 2018 and since then, the company has achieved an exceptional growth, reaching 3,000,000 consumers and 200,000 merchants, representing an increase of 800% and 450% respectively since the investment. It is currently Italy’s largest mobile payments provider and is expanding across Europe, with offices in Berlin and Luxembourg.

The Satispay deal marks Copper Street’s first significant exit from its private equity portfolio, which also includes Lantern, a leading player in the UK speciality finance debt purchase market, and One Four Nine Group, an independent UK financial advice and fund management group aiming to disrupt the advice industry.

Copper Street Capital’s investment strategy targets long-term strategic investments in financial services by capturing value opportunities in businesses across their entire life cycle, from growth investments to mature businesses, by partnering with ambitious and enthusiastic founders, entrepreneurs and management teams.

Jerry del Missier, Founding Partner and Chief Investment Officer of Copper Street Capital said: 

“It has been highly rewarding to work with Satispay over the past four years, helping guide its strategy, providing key introductions and assisting in the expansion of its banking network. The business has seen strong growth and made a significant impact on an important part of the financial services landscape.

The company has been a strong fit with our investment philosophy and belief in the European financial services sector, and we continue to explore new investment opportunities in the space.”

1 https://copperstreetcapital.com/2018/07/16/copper-street-capital-lead-investor-in-satispays-latest-funding-round/

Satispay LinkedIn Press Release