Lumen Capital
Financial services
·
2024
Refocusing a mid-market lender on its most profitable segments
A mid-market lender had grown into eleven segments and was profitable in four. We helped the board choose where to compete and exit the rest.
EBITDA margin in 18 months
Segments retained
Capital released
01
The challenge
Lumen Capital came to us with a clear symptom and an unclear cause. A mid-market lender had grown into eleven segments and was profitable in four.
Leadership had tried incremental fixes for two years. Each one helped a little and none of them changed the trajectory. The board wanted a decision, not another report.
02
Our approach
We started with the evidence: customer data, unit economics and interviews with the people closest to the work. Within four weeks we had a fact base the whole leadership team agreed on.
From there we framed three real options, modelled the trade-offs and worked with the executive team until there was one clear, owned choice. A partner stayed in the room through implementation.
03
The outcome
The result: +38% ebitda margin in 18 months, with 4 of 11 segments retained and £220M capital released.
More important than the numbers, the leadership team now runs the plan without us. We still meet every quarter to review progress against target.
Project details
Client
Lumen Capital
Industry
Financial services
Practice
Corporate strategy
Duration
14 weeks
Year
2024
Lead partner
James Whitfield
Founder · Strategy
How it unfolded
Three phases, one owner at every step.
Total engagement · 14 weeks
01
Weeks 1–4
Build the fact base
Customer data, unit economics and forty interviews, until the whole leadership team agreed on where the money was made.
02
Weeks 5–9
Frame the choices
Three real options, each modelled end to end and debated with the board until one clear choice remained.
03
Weeks 10–14
Commit and mobilise
Exit plans for seven segments, a new capital allocation rule and a named owner for every decision.
Client voice
Within a quarter we had a strategy the whole board signed up to, and a plan my team actually believed in. Eighteen months on, margins are up by more than a third.
Richard Hale
Chief Executive, Lumen Capital
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