PE Deals

FSC ups capital in Ufasa

Ufasa was formed to provide financing to consumers who are 'often excluded or ignored' by mainstream banks.

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  • FSC first invested in the business in March 2020
  • Ufasa is an independent consumer finance specialist
  • FSC Partner Martin Rauchenwald joins Ufasa’s board 

Financial Services Capital (FSC) completed a capital increase for its portfolio company, Spanish consumer finance specialist Unión Financiera Asturiana (Ufasa). FSC first invested in the business in March 2020.

Headquartered in Oviedo, Asturias, Ufasa was formed to provide financing to consumers who are “often excluded or ignored” by mainstream banks.

The €10 million capital increase will enable Ufasa to accelerate the growth of its loan book, as well as underpin the modernisation of its business model and digitalisation, according to FSC. Since its investment, FSC has executed a transformation plan, including a “step-change” in Ufasa’s technology and infrastructure. During this period, the bank has achieved 46 percent CAGR in its origination.

“Since FSC invested in Ufasa, growth has been supercharged and unit economics have been improved in line with FSC’s original investment thesis,” said Martin Rauchenwald, co-founder and managing partner at FSC. “Management have proven their ability to execute, and the business will double down on its existing track record of execution and continue its growth plan, demonstrated by its track record since change in control. We have a unique business plan that is resilient to market forces, meaning we can profitability grow into even a shrinking market.”