Dilosk to join Pepper Advantage following agreement for sale of its business. Dilosk joining Pepper Advantage is a significant milestone for Ireland’s residential mortgage market. Dilosk to Join Pepper Advantage Agreement to boost mortgage origination, loan servicing and credit management capabilities and expand institutional investor access
Pepper Advantage is a wholly owned subsidiary of J.C. Flowers & Co., a private, global investment firm focused on the financial services sector. Upon completion of the transaction Dilosk will be integrated into Pepper Advantage, an international credit management and technology business with c. €75 billion of assets under management in Ireland, Spain and the UK. But the companies did not disclose the financial terms of the transaction.
Founded in 2013, Dilosk has become a strong player in the Irish residential mortgage market. The company specialises in owner-occupied mortgages, buy-to-let lending and bridge loan products. Dilosk originates and services loans for a broad group of capital market and private credit investors.
Over the years, the company has built strong capabilities in originating and servicing mortgages. It has also strengthened its underwriting standards and built a robust funding platform with a diverse investor base. Its customer focus product strategy has also helped underpin steady business growth in the Irish lending market.
The combined platform brought in lending and credit capabilities
The deal combines Dilosk’s expertise in mortgages with Pepper Advantage’s international platform and technology capabilities in credit management. The combined business will strengthen services throughout the entire lending life-cycle from loan origination to end-to-end servicing.
Institutional investors will also have increased opportunities to deploy capital in mortgage assets sourced and serviced via the combined infrastructure. The integration will also enhance lending, servicing and technology capabilities in several European markets.
After completion, Diloxk expects to benefit from larger scale of operations and increased digital capabilities. The company will also benefit from Pepper Advantage’s global expertise and technology resources. These benefits should underpin further growth in Ireland’s competitive mortgage market.
Fergal McGrath, CEO & co-founder of Dilosk, commented: “This transaction represents a highly positive outcome for Dilosk, our customers, our investors and our colleagues. Becoming part of the Pepper Advantage global business marks an exciting new chapter for the company. Its strong technology platform, deep client relationships, and long-term investment approach align strongly with Dilosk’s strategy and will support our ambition to continue building a leading Irish mortgage provider and servicer.”
Fraser Gemmell, Group CEO of Pepper Advantage, added: “This acquisition marks a significant step forward in our growth strategy. By welcoming Dilosk into the group, we are deepening our credit access capabilities, diversifying our business in Ireland, and scaling the reach of our credit management platform. It will strengthen our ability to offer institutional clients more ways to access credit opportunities supported by market-leading analytics and oversight, in addition to expanding our European AUM. We are very excited at the prospect of welcoming the Dilosk team and together building something with long-term impact for the Irish market.”
Acquisition Supports Long-Term European Growth Strategy
The companies expect to complete the transaction during late Q3 2026, subject to regulatory approvals and customary closing conditions. After completion, Dilosk will continue operating under its established ICS Mortgages brand. Likewise, the company will retain its existing management team and regulatory structure while continuing to execute its long-term business strategy.
Alantra served as the exclusive financial advisor to Pepper Advantage throughout the transaction.
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News Source: Businesswire.com
