TowerBrook Announces Significant Investment in CapQuest

London, 18 August 2011 – TowerBrook Capital Partners L.P. (“TowerBrook”), a leading international investment management firm, announces that it has made a majority investment in CapQuest Group Limited (“CapQuest” or the “Company”). CapQuest is a UK market leader in the purchase, management and collection of consumer debt.

CapQuest was founded over 25 years ago. It has become one of the largest consumer debt purchasers and providers of outsourced credit management services in the UK. The company offers services covering all stages of the debt recovery process and provides multiple credit management solutions to originators and borrowers of consumer credit, including payment plan arrangements and payment settlements. CapQuest has a multi-site infrastructure with employees across offices in England, Scotland and Cape Town, South Africa. Debt recovery activities are backed by an efficient and highly-effective debtor tracing process.

Over its history, CapQuest has acquired 516 debt portfolios comprising a total of nearly 1.8 million accounts. In the past seven years the Company has acquired debt from over 30 UK vendors involving nearly 50 distinct credit brands. As a result, the Company today benefits from strong, long-term relationships with the majority of the UK based consumer credit organisations, across multiple sectors. During the past 12 months, CapQuest has also managed approximately 1.1 million defaulted accounts with an aggregate face value of nearly £1.7 billion on behalf of most of the UK’s leading third party credit originators.

CapQuest believes that TowerBrook, with its significant financial services experience and international operations, will be an excellent partner and will assist management in expanding the business into new areas of the market over the coming years. A multi-year credit facility of close to £100 million, provided by a group of three leading financial institutions, will be put in place at closing. This will further reinforce CapQuest’s capital base and in particular its ability to invest in larger debt purchase transactions.

Mark Brunault will continue as CEO of CapQuest, with Mike Daniels retaining a position on the Board. Current Chairman Joe Dlutowski is stepping down after 7 years with the business. He will be replaced by John Connolly, previously Global Chairman of Deloitte. John spent his career with Deloitte where he was CEO of the UK firm and from 2007 until May 31 2011 the Global Chairman. He is currently the Chairman of Amec Plc, the FTSE 100 global engineering company, a Special Adviser to Deloitte and chairman of other private companies.

Mark Brunault, CapQuest CEO, commented:

“TowerBrook’s investment creates a fantastic opportunity for CapQuest to achieve its full growth potential. TowerBrook shares our vision for expansion both in our core areas and in new markets. They fully support our commitment to employing best practice in everything we do, developing talented people and investing in pioneering debt recovery technology. We are excited to work together as partners.

“I would also like to take this opportunity to thank Joe for his invaluable support and counsel over the last 7 years and wish him all the best for the future.”

Gordon Holmes, Managing Director, TowerBrook, said:

“We are delighted to have been chosen by CapQuest to make a majority investment. The Company has been managed expertly since its inception, through a variety of market conditions. It has a superior delivery track record which is based on excellent client relationships and an open, trusted and fair approach to the successful resolution of their customers’ debts, with a strong focus on compliance and a respectful treatment of its debtors.

“We believe that with this debt and equity financing CapQuest will have the strengthened capital base to support continued growth and evolution into new areas of the growing market. We look forward to partnering with the Company in building on the substantial success that has already been achieved.”

TowerBrook was advised by Weil Gotshal, E&Y and Quayle Munro, whilst the Company was advised by Travers Smith and Hawkpoint Partners.

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