On 12 February 2021, the B-North management team joined us on Hardman Talks for a presentation and Q&A session.
B-North is a non-listed firm, creating a fintech enabled bank to disrupt the £150bn UK SME lending market. Currently finalising its Series A capital to secure its banking licence and commence lending, it has already garnered support from high quality retail and institutional investors. It is now seeking a small number of high net worth/wealth managers able to co-invest £100k+ alongside those institutions, to balance its investor base.
Among the highlights from the presentation were:
Management also presented how the benefits at the business level is targeted to feed through to investor returns with a target exit multiple IRR of 35-40% (company’s base case 2028 valuation of £1.6bn, a multiple of 10.7 times profit before tax).
B-North offers investors a business which:
We believe B-North should be lower cost than peers, and its hybrid, technology-enabled model will bring it close to customers and intermediaries. The financial model requires a market share of just 2.5% by 2028 to create a highly profitable, and valuable, bank, in our view.
You can download the presentation used in the event here, or watch the recording above.