Pepper Money UK has announced that it will transition to operate as a standalone UK-regulated entity.

The move follows the specialist mortgage lender receiving approval of the change in regulatory control from the Financial Conduct Authority (FCA) in December.

Pepper Money UK offers a range of specialist residential first, buy-to-let and second charge mortgage products to customers whose requirements may be underserved by traditional high street banks and building societies

The lender also revealed that the transaction includes a new equity commitment by a fund managed by Bayview alongside private credit funds and accounts managed or advised by KKR.

KKR is a global investment firm that offers alternative asset management as well as capital markets and insurance solutions.

CEO of Pepper Money UK, Laurence Morey, commented: “We’re delighted to welcome Bayview as a new shareholder and to continue our longstanding relationship with KKR. The support of experienced institutional investors reflects confidence in our business model, governance framework and long-term strategy.

“Guided by our clear and consistent strategy, we will continue to lead the specialist first charge and second mortgage markets with innovation, expertise and an unwavering focus on service.”

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