Global law firm Clifford Chance advises Younited and its main shareholders (including Eurazeo, Bpifrance, Goldman Sachs and Bridgepoint) on the landmark business combination of Younited with Iris Financial, a Euronext Amsterdam-listed company focused on the financial services sector and sponsored by Ripplewood Holdings I LLC.
Younited, a leading European consumer credit business with 1.2 million clients served since its inception, has created a powerful technology platform featuring state-of-the-art APIs and artificial intelligence. This platform supports a scalable pan-European instant credit system, transforming the lending market by offering seamless and transparent products. As of the end of 2023, Younited has financed approximately €6 billion in loans, both directly and through its ecosystem of merchant and financial partners, aiding European households in achieving financial well-being.
Iris Financial successfully raised $230 million (approximately €220 million) in gross offering proceeds in its IPO. The business combination is expected to close in the final quarter of 2024. Iris Financial will maintain its listing on Euronext Amsterdam and seek an additional listing on Euronext Paris.
The Business Combination Agreement was executed on October 7, 2024. Upon completion, the combined entity will operate under the name Younited Financial and will inject between €150 and €200 million of capital into Younited in order to increase Younited’s Common Equity Tier 1 capital.
With the proceeds from the transaction, Younited plans to accelerate its growth strategy and foster business development, supported by significant additional balance sheet capacity. This injection of capital is expected to generate positive net income by the end of 2025, significant growth in loan origination and a ROE of 25%+ by 2027.
The highly complex transaction is led by Partners Benjamin de Blegiers (Paris) and Axel Wittmann (Frankfurt), with support from Senior Associate Alexandre Namoun (Paris), as well as Associates Carla Winslow-Kruger (Frankfurt), Charlotte Hershkovitch (Paris) and Reina Mahmoud (Paris).
The Luxembourg office also advised on Luxembourg law aspects, with a team composed of Senior Partner Christian Kremer, Counsel Simone Schmitt and Senior Associate Philippe Sadler
