KKR, one of the world’s leading investment firms, has reached an agreement to acquire the consumer credit receivables portfolio of UK-based financial services provider NewDay from its current owners, Cinven and CVC.
This deal will separate NewDay’s credit balance sheet from its origination and servicing operations, which will continue to operate as the NewDay Operating Group.
Under the terms of the agreement, KKR will also invest in the NewDay Operating Group alongside Cinven and CVC, and has committed to a multi-year forward flow arrangement for future loan originations. This means that while KKR will own the receivables portfolio, NewDay will continue to originate new credit accounts and service existing ones, ensuring continuity for customers and merchant partners.
The transaction is designed to combine NewDay’s established expertise in originating and managing consumer credit with KKR’s strength in asset-based finance. The partnership is expected to give NewDay greater capacity to scale its operations, expand its reach in the UK market, and continue developing innovative credit and technology solutions for both consumers and retail partners.
NewDay’s business has been growing steadily, with strong profitability and cash generation. In the first half of 2025, the company reported a 30% increase in underlying profit before tax to £107 million, and a 21% rise in gross receivables to £5.2 billion. Earlier this year, NewDay also took over the Argos Financial Services store card portfolio, adding £834 million in receivables and 2.2 million customers—assets that will be included in the KKR transaction.
The receivables portfolio will continue to be funded through NewDay’s existing securitization structures, and customers will see no changes to their accounts or services as a result of the deal. The NewDay Operating Group will remain focused on delivering high-quality customer outcomes and maintaining its partnerships with major UK retailers.
Advisors: Barclays Bank served as financial advisor, and Clifford Chance served as legal advisor to NewDay. Morgan Stanley & Co. International plc served as lead financial advisor and structuring agent, Societe Generale, London Branch served as lead structuring advisor and provided financial advice, KKR Capital Markets served as arranger, and Latham & Watkins served as legal advisor to KKR.
KEY QUOTES:
“We are pleased to welcome KKR as a new shareholder and strategic partner. This transaction is a strong endorsement of NewDay’s platform, people, and performance, and reflects KKR’s confidence in our ability to deliver sustainable growth.
We also want to thank our shareholders Cinven and CVC, who have been exceptional partners since their investment in the business in 2017. Together we have built NewDay into a leading provider of consumer finance across multiple brands in the UK, serving c. 5.9 million customers.”
John Hourican, CEO of NewDay
“We are pleased to have partnered with NewDay, supporting the company’s impressive growth journey. During this time, NewDay has become the UK’s leading provider of digital embedded finance and credit card solutions, forged key partnerships with top British retailers and developed cutting-edge, next-generation proprietary technology.”
Peter Rutland Managing Partner at CVC
“Together with the management team, we identified an important yet underserved area of the market where NewDay had leading underwriting expertise. Throughout our ownership, NewDay has continued to pioneer innovation in credit, whilst also demonstrating a resilient track record. We are proud to have played a role in NewDay’s success and are confident in the continued growth trajectory of the business.”
Rebecca Hunter, Senior Principal at Cinven
“We are pleased to enter into this strategic partnership with NewDay to support their continued growth and innovation in the UK consumer credit market. We also look forward to collaborating with Cinven and CVC, whose backing has helped establish NewDay as a leading provider of consumer finance. Through our Asset-Based Finance strategy, KKR is well-positioned to support NewDay’s expanding multi-brand platform as they deliver responsible credit solutions to millions of UK consumers.”
Varun Khanna, Partner and Co-Head of Asset-Based Finance at KKR
