Carlyle Expected to Take Control of Very Group from Barclay Family by October

The American investment firm Carlyle is poised to take control of The Very Group, a major UK online retailer, from the Barclay family by October under the terms of its financing arrangements. Carlyle, the largest lender to Very Group's parent company, plans to exercise a 'step-in right' allowing it to convert its debt into equity ownership, potentially ending the Barclay family's two-decade ownership. The Abu Dhabi-based investment vehicle IMI, also a creditor, is expected to secure either an equity stake or a preferred debt position in the recapitalized company. Very Group, chaired by former Conservative chancellor Nadhim Zahawi, secured a significant refinancing deal in April, including £598m in senior secured notes and an extended credit facility, to bolster its financial position. Although the Barclay family considered an auction earlier this year, no formal sale process was launched, and Carlyle may hold the business for some time before seeking to sell it. The strategic value of Very Group lies both in its core retail business and its technology-driven financial services operations.