MeDirect Bank Group (MDB Group) has unveiled the identity of at least one of the companies the bank is currently in talks with in regard to its possible sale.

In an announcement to the market on Wednesday, MeDirect said it had entered into an exclusivity agreement related to the possible purchase of all the shares in MDB Group by a consortium of investors led by Majoris.

Majoris Holding Limited is the private family office of a fintech entrepreneur who has developed tech-driven regulated lending businesses in the United Kingdom and the United States, as per MeDirect’s update to the market.

The company's website says that it "invests in technology-driven businesses primarily in the financial services sector", looking for "synergies across the group and delivering economies of scale and long-term stakeholder value".

The offer was first made public in late May, with MeDirect telling WhosWho.mt at the time that the offer remained “at an early stage” and assuring investors that any transaction arising from the offer “would involve a long process including full regulatory review.”

A spokesperson for the bank added that MeDirect, as part of its ongoing capital management, “has been working on a regular basis with its ultimate shareholder, AnaCap Financial Partners II L.P., to support the growth of its WealthTech and lending operations by bringing additional capital and resources to the Bank.”

AnaCap Financial Partners II L.P. is a fund managed a AnaCap Financial Partners LLP, a UK-based private equity firm that took over what was then-known as Mediterranean Bank in 2009.

Mediterranean Bank was founded in 2004.

The name change occurred in 2017, when it adopted the name of its Belgian subsidiary, having entered the Belgian market in 2013.

Financial Update

Last week, MeDirect announced a profit after tax of €10.1 million for the six months ended 30th June 2023. During the period, it continued to launch new products and further expanded its specialised lending platform, facilitated through MeDirect’s investment in technology, which is “producing tangible results”.

MeDirect’s retail franchise, focused on affluent customers, grew by eight per cent over the past 12 months to more than 114,000 retail clients, of whom 41,000 are wealth clients. The number of wealth clients increased by 12 per cent over the past twelve months, and total client financial assets increased by 4.5 per cent year over year, reaching €4.5 billion “notwithstanding very challenging market and macroeconomic conditions”.

MeDirect continued to grow its specialised lending platform, focusing on mortgages in Belgium, the Netherlands and Malta. Over the past 12 months, MeDirect’s mortgage portfolio grew from €1.7 billion to €2.2 billion, an increase of more than 30 per cent, with investment across a variety of mortgage asset classes.

On the Maltese corporate lending side, MeDirect said it continues to extend “carefully selected, well-collateralised loans to support the Maltese economy”, with a portfolio of €128 million as at 30th June 2023.

Arnaud Denis, MeDirect’s CEO, emphasised that “MeDirect’s success in executing its ambitious model transformation is reflected in improved financial results as well as continued development of its products, franchise and geographic footprint.

“This was made possible by careful balance sheet management combined with continuous investment in technology and talent. We look forward to further scale up our platform and deliver sustainable profitability.”