Bridgepoint Group has completed its take-private acquisition of Funding Circle Holdings, the small business lending platform, in a deal valuing the company at approximately £1.4 billion including debt. The transaction, first announced in January, received overwhelming shareholder approval with 94 per cent of votes cast in favour of the scheme of arrangement. Funding Circle shares were suspended from trading on the London Stock Exchange on Monday morning ahead of the formal delisting.

The buyout marks the latest in a series of private equity firms swooping on publicly listed UK fintechs trading at substantial discounts to their IPO valuations. Funding Circle, which listed in 2018 at a valuation of £1.5 billion, had seen its share price decline by more than 60 per cent from its debut before Bridgepoint's approach. The PE firm has indicated it plans to invest heavily in Funding Circle's technology platform and expand its operations into new European markets, leveraging Bridgepoint's existing portfolio of financial services businesses.

Industry observers say the deal underscores a broader trend of institutional capital seeking to acquire proven fintech businesses away from the scrutiny of public markets. Richard Hayes, who will remain as Funding Circle's chief executive, said the company would benefit from the long-term investment horizon that private ownership provides. At least three other London-listed fintechs are understood to be in discussions with PE firms about potential take-private offers, according to bankers advising on such transactions.