Pepper Advantage has agreed to acquire Dilosk DAC, the Irish residential mortgage origination and servicing platform that operates under the Dilosk and ICS Mortgages brands. Pepper Advantage is wholly owned by J.C. Flowers & Co., a global private investment firm focused on financial services.
The acquisition is expected to close in late Q3 2026, subject to regulatory approvals and other customary closing conditions.
Following completion, Dilosk will become part of Pepper Advantage, which manages approximately €75 billion in assets across Ireland, Spain and the United Kingdom.
Dilosk will continue operating under the ICS Mortgages brand with its existing management team and regulatory framework.
The company also plans to continue pursuing its current strategic initiatives following the transaction.
Founded in 2013 and headquartered in Dublin, Dilosk has developed a diversified mortgage platform serving the Irish market.
The company originates and services owner-occupied mortgages, buy-to-let mortgages and bridge loans for capital markets and private credit investors.
Dilosk has built capabilities across mortgage origination, underwriting, funding and loan servicing.
Its funding platform is supported by an established investor base and a residential mortgage-backed securities program.
Dilosk has a mortgage book of approximately €1.7 billion and has issued more than €3.2 billion through 11 public securitizations since its formation.
The company acquired the ICS Mortgages business from Bank of Ireland in 2014.
ICS Mortgages was originally established in 1864 as the Irish Civil Service Building Society.
The transaction will combine Dilosk’s Irish mortgage origination business with Pepper Advantage’s international credit management and technology platform.
The combined organization will be able to support more of the lending lifecycle, beginning with loan origination and continuing through servicing and portfolio management.
Institutional clients will be able to deploy capital into mortgage assets originated and serviced through the companies’ lending, technology and operational infrastructure.
Pepper Advantage expects the transaction to strengthen its credit access capabilities and diversify its business in Ireland.
The acquisition will also expand Pepper Advantage’s European assets under management and provide additional opportunities for institutional investors seeking exposure to Irish residential mortgage assets.
Dilosk expects to benefit from Pepper Advantage’s larger operating scale, international experience and digital capabilities.
The companies believe these resources will support Dilosk’s continued growth as an Irish mortgage provider and servicer.
Pepper Advantage provides credit management and technology services across Asia, Europe and the United Kingdom.
The company works across residential and commercial mortgages, real estate, small and midsized business loans, asset finance, leasing, auto loans, consumer lending, credit cards, retail finance and buy now, pay later products.
Its customers include banks, fintech companies, financial institutions and investment firms seeking to manage credit portfolios and reduce the operational complexity associated with servicing loans.
Alantra served as the exclusive financial adviser to Pepper Advantage in connection with the acquisition.
KEY QUOTES:
“This transaction represents a highly positive outcome for Dilosk, our customers, our investors and our colleagues. Becoming part of the Pepper Advantage global business marks an exciting new chapter for the company. Its strong technology platform, deep client relationships and long-term investment approach align strongly with Dilosk’s strategy and will support our ambition to continue building a leading Irish mortgage provider and servicer.”
Fergal McGrath, CEO and Co-Founder of Dilosk
“This acquisition marks a significant step forward in our growth strategy. By welcoming Dilosk into the group, we are deepening our credit access capabilities, diversifying our business in Ireland and scaling the reach of our credit management platform. It will strengthen our ability to offer institutional clients more ways to access credit opportunities supported by market-leading analytics and oversight, in addition to expanding our European AUM. We are very excited at the prospect of welcoming the Dilosk team and together building something with long-term impact for the Irish market.”
Fraser Gemmell, Group CEO of Pepper Advantage
