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Lexham Partners Invests in Atom Bank

Lexham Partners, founded by Dominic Perks, is buying a stake in Atom Bank. The deal involves Sanjiv Somani, a key figure in the growth of Chase UK.

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English

United Kingdom

TechnologyUkInvestmentFinanceBusinessBanking

Lexham PartnersAtom BankHambro PerksChase UkJp Morgan

Dominic PerksLee RochfordSanjiv Somani

Who is acquiring a stake in Atom Bank and who founded the acquiring firm?: Lexham Partners, a new investment vehicle founded by Dominic Perks, is acquiring a multi-million pound stake in Atom Bank, a digital-only lender. The deal involves purchasing shares from existing investors, with Sanjiv Somani of Lexham managing the stake.
What is Sanjiv Somani's background, and what role will he play in this investment?: Sanjiv Somani, a partner at Lexham Partners, played a significant role in the launch and growth of Chase UK and JP Morgan's acquisition of Nutmeg. His expertise adds value to Lexham's investment in Atom Bank.
What are some of the challenges Atom Bank has faced, and what are its future plans?: Atom Bank, despite its launch after the financial crisis, hasn't achieved the same growth as competitors like Monzo and Starling Bank. The bank implemented a four-day work week in 2021, and an IPO is not expected for at least a year.
How did Atom Bank's chairman inform investors about the deal, and what was the stated reason for facilitating it?: Atom Bank's chairman, Lee Rochford, notified investors of the plan in a memo, stating that the deal was facilitated in response to shareholder requests for liquidity. The company has previously described its funding rounds as the last before a potential IPO.
What is the reported value of the Atom Bank stake being acquired, and how does it compare to previous valuations?: The acquisition price is reportedly £3.5 million at 40p per share, valuing Atom Bank at around £400 million. This valuation is lower than previous funding rounds, including one in 2015.

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