Business funding provider and peer-to-peer lender Ludgate Finance has been bought out by its management team.
The firm, which operates from offices from Ludgate Hill in Birmingham's Jewellery Quarter alongside bases in Wolverhampton and Coventry, has been acquired from parent company Poppleton & Appleby.
Poppleton & Appleby, which specialises in business recovery and insolvency, moved into arranging finance seven years ago and established Ludgate as part of its group.
Director Richard Mason, together with colleagues David Grocott and Steve Grice, have conducted the management buyout to create a stand-alone business which will continue to service the peer-to-peer sector.
The three directors have more than 50 years of experience in the banking and finance sector.
Mr Mason said: "The Ludgate Finance part of the overall business has grown significantly in recent years and, with the increasing diversity, felt it had more potential to develop as a standalone entity.
"The company has evolved in terms of its operation since it started and we all felt there was a suitable divergence between the two firms that it made much more sense for them to be separated out.
"It is an entirely mutual decision and we will be trading with each other in the future as, although our areas of operation are now markedly different, there are very clear synergies which can help our clients."
Poppleton & Appleby was established more than a century ago and advises companies across the UK.
Partner Martin Coyne said: "This move reflects the success of both major parts of our business.
"We have recognised the continuing evolvement of the peer-to-peer sector in an increasingly fluid lending marketplace which shows no sign of abating.
"The businesses will continue to work together to assist our mutual clients who may be experiencing financial difficulties."
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