2.5x / 18% IRR
Retail Decisions was a payments conglomerate listed on the London Stock Exchange, which operated fuel card and fraud prevention businesses primarily in Europe and Australia, as well as a the US, China and South Africa.
ReD was well positioned to exploit the growth in the global market for transaction cards, where certain niches were identified as having potentially very high levels of growth, such as pre-paid cards and on-line card payments. A strong, defensible, cash generative business afforded downside protection and further return potential via skilled balance sheet management.
ReD Fraud prevention business
By 2014 ReD had become the leading independent provider of fraud prevention and risk management solutions for on-line payments serving large on-line and multi-channel merchants across North America, Europe, Asia-Pacific and Latin America. At exit, ReD was the market leader in several countries, including the US and the UK. In the US, the Company screened around 25% of all on-line payment transactions.
Palamon’s investors made a total return of 2.5x invested capital via a recapitalisation and four separate strategic sales across the world: the UK Fuel Cards business for £41 million in August 2009, the Australian businesses for €243 million in September 2010, the European fuel card business to Eurotoll in March 2011 and the payments fraud prevention business for $205m in July 2014.