Asset management firm Investcorp has purchased a stake of 40 per cent in consumer debt management specialist TDX Group for £28 million.

TDX, which claims to sell more than 40 per cent of all defaulted unsecured consumer debt in the UK, will use the funding to expand both in its core UK market and internationally.

The Nottingham-headquarted company runs The Insolvency Exchange, which advises on more than 80 per cent of the UK’s individual voluntary agreements (IVAs) on behalf of creditors. IVAs allow debtors to negotiate a repayment plan to avoid bankruptcy.

Venture capital firm Octopus Investments, which held a 6.3 per cent stake in TDX prior to Investcorp’s investment, says it has sold the majority of that stake for approximately £2.6 million, representing a return of 9.7 times money for investors in the Octopus Eclipse VCT.