Houlihan Lokey Advises Atalaya Capital

Houlihan Lokey is pleased to announce that Atalaya Capital Management LP (Atalaya), a US-based alternative investment advisory firm, has invested in a Series B funding round of £110 million in Allica Bank Ltd. (Allica Bank).

Allica Bank was granted its UK banking licence in September 2019 and is a leading fintech SME challenger bank. The investment from Atalaya and existing investors enables Allica Bank to acquire around 2,000 SME customers and some £600 million of associated lending from AIB Group (UK) PLC following AIB’s exit from the SME market in Great Britain. The deal, expected to complete in 2022, is the first major transaction for Allica Bank since its launch in March 2020, and the acquisition brings forward Allica’s target profitability date to the middle of 2022, with the total combined lending book forecast to be over £1 billion, based on continued organic growth combined with the quality of the AIB SME lending portfolio.

Existing lead investor Warwick Capital Partners, which remains its largest shareholder, is also investing in Allica’s new round.

Richard Davies, Chief Executive of Allica Bank, said, “This funding round, alongside the acquisition from AIB, will enable us to support and scale even more of Britain’s established SMEs and growth companies at a time when SMEs are looking for more tailored support from their bank.”

Justin Burns, Managing Director at Atalaya, said, “We are thrilled to support the next growth phase of Allica in its mission to empower SMEs to succeed.”

Houlihan Lokey served as the exclusive financial advisor to Atalaya Capital Management. This most recent transaction further strengthens Houlihan Lokey's leadership in digital banking and specialty finance, a core expertise of the Financial Institutions team.