A new investment vehicle founded by one of Britain’s biggest venture capitalists has taken a stake in Atom Bank, the digital-only lender.
Sky News has learned that Lexham Partners, set up this year by Dominic Perks, co-founder of Hambro Perks, is negotiating the purchase of a multi-million pound stake in Atom Bank from a number of its existing investors.
City sources said Lee Rochford, president of the lender, informed investors about the project in a memo in recent days.
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If completed, Sanjiv Somani, who played a key role in the launch and rapid growth of Chase UK, the digital bank owned by JP Morgan, will manage the stake in his capacity as a partner at Lexham, sources said.
Mr Somani was also instrumental in JP Morgan’s purchase of Nutmeg, the investment platform, for £700 million, in 2021.
The deal would add Lexham to Atom Bank’s share register that includes BBVA, the Spanish banking giant, and Toscafund.
A source said Lexham would acquire £3.5m worth of shares at a valuation of 40p per share, the equivalent of around £400m.
According to Lee Rochford, president of Atom, the price is the same as the last primary fundraising round a year ago.
However, a banking analyst pointed out that this price was more than half lower than the price at which it raised capital in 2015.
“In light of comments previously received from shareholders, particularly early-stage minority shareholders, regarding the possibility of liquidating all or part of the shares they hold, the board of directors has agreed to communicate and facilitate the offer to qualified shareholders, but please note that neither the company nor the board of directors is making a recommendation regarding the offer,” Mr. Rochford said in his note.
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Atom Bank launched in the aftermath of the financial crisis, but has failed to achieve the same type of growth trajectory as rivals such as Monzo and Starling Bank.
In 2021, it began allowing its employees to work four days a week, becoming one of the largest UK companies to commit to such a radical change in its working practices.
The company has repeatedly described its investor rounds as the last before a likely IPO, even though an IPO is unlikely to happen for at least a year.
Both Atom and Lexham have been contacted for comment.