News

Charcol buy-out from Bradford & Bingley

Advantage Capital has just completed the buy-out of Charcol, the UK's leading mortgage broker, from Bradford & Bingley plc. Jon Moulton, head of Alchemy Partners, also invested in the deal.

Charcol was founded 30 years ago by John Garfield and Charles Wishart. The business was acquired by Bradford & Bingley in 2000 for £102 million. Today, it employs 350 people, operating from ten offices around the UK. Last year it arranged £3 billion of mortgage loans, making it equivalent in size to a top three UK building society.

"The buy-out of Charcol is a classic difficult deal of real merit", said Martin Bodenham and Trevor Jones of Advantage Capital. "The UK housing market is at a turning point, the mortgage industry is newly regulated, the business has suffered from poor profitability and the deal had to be done in three weeks. However, the merit comes from backing the two original founders, both of whom are proven money-making managers".

John Garfield, who is joining Charcol as Executive Chairman, commented: "I am absolutely thrilled to be back in the business that I started with Charles 30 years ago. I passionately believe that today, as much as at any other time, there is a need for independent mortgage advice and I believe Charcol will soon be back to its entrepreneurial ways as a standalone business".