Portman Finance Group is in discussions with private-equity investors over a potential transaction that could value the specialist business lender and broker at more than £300m.
Pollen Street Capital is among the bidders reported to have shown interest, with investment bank Stephens understood to have been running a sale process for several weeks.
The talks could result in either a controlling transaction or the sale of a minority stake, according to people familiar with the process cited by Sky News.
No deal has been agreed, and Portman has not publicly confirmed the process.
The Northampton-based company provides business loans, asset finance, tax funding, bridging loans, equipment finance, and access to government-backed lending through partner institutions.
Portman says it works with tens of thousands of businesses on their finance requirements and operates through a combination of direct lending and a panel of external funding partners.
The reported valuation follows a period of rapid expansion. Revenue increased by 81% in the year to 30 September 2025, while profit nearly doubled to slightly above £15m, according to figures cited in reports of the sale process.
A transaction above £300m would place a substantial value on a privately owned specialist finance provider operating outside the largest high-street banking groups.
Non-bank finance has become an established part of the UK SME market. Smaller companies frequently use specialist lenders and brokers where conventional bank products do not match the timing, security, credit profile, asset type, or flexibility required for a transaction.
Asset finance is one important part of that market because machinery, vehicles, technology, and other equipment can provide security against the borrowing.
Businesses can spread the cost of productive assets over their useful life rather than committing the full purchase price upfront.
Portman’s model combines brokerage with lending from its own balance sheet. That creates access to fee income and financing margins while allowing borrowers to be placed with external providers when another lender offers a more suitable product.
The hybrid structure broadens the range of customers the business can serve, but it also makes funding access, credit quality, compliance, and relationships with partner lenders central to continued expansion.
The wider SME finance environment has shifted substantially during the past several years.
Higher interest rates increased the cost of borrowing, while uneven trading conditions made underwriting and credit quality more important across many sectors.
Companies have nevertheless continued to require capital for equipment, tax liabilities, acquisitions, working capital, and expansion.
That has supported demand for alternative providers capable of making specialised or faster credit decisions where standardised bank products are unsuitable.
Government guarantees also form part of the market infrastructure. Portman works with lenders accredited under the British Business Bank’s Growth Guarantee Scheme, which is intended to support lending to viable smaller businesses by sharing part of the credit risk with finance providers.
The programme has been expanded as government seeks to increase investment among smaller companies and broaden access to finance.
Private equity has remained active across specialist financial services, particularly where businesses combine scalable distribution, recurring customer demand, technology-supported processes, and fragmented end markets.
Pollen Street Capital, one of the investors reported to be considering Portman, specialises in financial and business services and has backed lending, insurance, payments, and wealth-management companies.
Institutional ownership could provide Portman with capital for acquisitions, technology investment, a larger lending balance sheet, or further expansion of its product range.
The eventual structure would depend on whether existing shareholders seek a complete exit or retain an interest alongside a new investor.
Regulatory requirements also increase as specialist finance businesses expand. Business lending to limited companies does not always fall within the same consumer-credit framework as lending to individuals, but groups offering several products may operate across activities subject to different regulatory treatment.
Systems, governance, and credit controls therefore have to develop alongside lending and introduction volumes.
The sale discussions remain preliminary and there is no certainty that they will produce a transaction.
A completed deal would provide a fresh valuation benchmark for an established UK SME finance platform at a time when access to growth and investment capital remains a central issue for smaller businesses.
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