- OakNorth has provided a £30m debt financing package to support Fortress Investment Group and Lion Capital’s acquisition of Loungers;
- The capital is part of a wider club loan with several other banks, totalling £190m;
- Loungers currently operates over 290 sites across the UK under the Lounge, Cosy Club, and Brightside brands, with a ‘good value’ proposition, offering an all-day menu that appeals to a wide demographic depending on the time of day;
- The transaction will enable Loungers to continue its plan to roll out over 30 new sites a year.
Bristol, UK – 1st May 2025 – OakNorth – the leading bank for entrepreneurs, by entrepreneurs – has participated in a club loan to support Lion Capital and Fortress Investment Group’s Public to Private acquisition of Loungers, one of the UK’s fastest-growing all-day café-bar operators.
Founded in 2002 and headquartered in Bristol, Loungers operates three distinct brands – Lounge (252 sites), Cosy Club (36 sites), and Brightside (4 sites) – and employs over 9,000 staff. Known for its unique all-day, community-focused proposition, the business has demonstrated consistent like-for-like revenue growth, resilient cash generation, and an industry-leading site success rate. Unlike a lot of chains, each site is branded and positioned individually within its respective community, meaning that many of its local customers aren’t aware of the scale of the business.
Founded in 1998, Fortress is a leading, highly diversified global investment manager with approximately $46bn in assets under management. It manages assets on behalf of over 2,000 institutional clients and private investors worldwide across a range of investment strategies, including private equity, credit, and real estate. Meanwhile, Lion Capital is a consumer-focused private equity firm based in London, specialising in investments in the consumer sector across Europe and North America. Since its founding in 2004, Lion Capital has invested in over 175 consumer brands, building deep expertise in helping businesses grow through strong brand development and operational excellence.
Under Fortress and Lion’s ownership, Loungers plans to continue its proven site rollout strategy, opening over 30 new sites a year to capture further market share in underserved UK locations. The strong cash generation and low leverage profile of the business post-acquisition are expected to underpin continued investment in expansion. The strength of the management team is core to Fortress’ and Lion Capital’s desire to back the business – the CEO, Nick Collins, has been with the business for over 13 years, and co-founder, Alex Reilley remains Chairman and a driving force within the business.
Alex Reilley, executive chairman and co-founder of Loungers, commented: “We’re hugely excited about what the future holds for Loungers. Having the backing of both Fortress and Lion Capital provides us with the firepower and strategic support to continue our ambitious expansion plans while staying true to the culture and values that have made Loungers so special. Throughout this transaction, OakNorth has been an outstanding banking partner – responsive, commercial, and supportive at every step. They are long-term supporters of the hospitality sector and have a deep market understanding of the challenges and opportunities facing businesses like ours.”
Stuart Blair, Debt Finance Director at OakNorth, continued: “Loungers is a best-in-class operator with a differentiated and highly scalable model. The business has shown impressive resilience through multiple macroeconomic cycles and continues to deliver outstanding site-level economics. The management team led by Nick and Alex is world-class which is why they’ve been able to deliver such strong results for decades. It’s been a pleasure to work alongside Fortress and Lion Capital – two highly experienced sponsors with a deep understanding of the hospitality sector – to support the next stage of Loungers’ growth journey.”
ENDS
Notes to editors
Launched in September 2015 and founded by entrepreneurs, OakNorth is a digital bank focused on serving and empowering the lower mid-market (businesses with £1m-£100m in turnover), that are seeking to scale but are routinely underserved or overlooked by traditional banks.
To date, it has provided c.£12.5bn to these businesses across a wide range of sectors, achieving performance metrics that place it amongst the top 1% of commercial banks globally. Its loans have directly contributed to the creation of 56,000 jobs, and over 34,000 new homes across the UK and the US – the majority of which are affordable and social housing.
It is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
Visit www.oaknorth.co.uk for more information.
For press inquiries, please email: [email protected]