Pepper Advantage buys Dilosk in Irish mortgage deal

Dilosk has agreed to sell its business to Pepper Advantage, bringing the Irish mortgage platform into a group owned by J.C. Flowers & Co.

Terms were not disclosed. The transaction is expected to complete in late Q3 2026, subject to regulatory approvals and customary closing conditions.

Dilosk, which trades under the Dilosk and ICS Mortgages brands, operates in Irish residential mortgage origination and servicing. Founded in 2013, it acquired ICS Mortgages from Bank of Ireland in 2014.

Dilosk has a €1.7 billion mortgage book and has issued more than €3.2 billion across 11 public securitisations since inception through its Dilosk RMBS securitisation shelf.

According to the companies, Pepper Advantage manages €75 billion in assets across Ireland, Spain and the UK. Its wider operations span Asia, Europe and the UK, covering residential and commercial mortgages and other credit asset classes.

The acquisition adds Dilosk's Irish mortgage operations to Pepper Advantage's existing credit management and technology business. After completion, Dilosk will continue to operate under the ICS Mortgages brand, with its existing management team and regulatory framework.

Irish market

Dilosk has built its business around owner-occupied and buy-to-let mortgage products in Ireland. It also originates and services bridge loans for capital markets and private credit investors.

The transaction expands Pepper Advantage's position in Ireland and broadens its activities in the market. For Dilosk, the sale links the lender and servicer to a larger international platform focused on credit management.

ICS Mortgages traces its history to 1864, when it was established as the Irish Civil Service Building Society. The brand will remain in place after the change of ownership.

J.C. Flowers & Co., which owns Pepper Advantage, is a private investment firm focused on financial services. The combined group will sit within an investor with an established presence in the sector.

Fergal McGrath, Chief Executive Officer and Co-Founder of Dilosk, described the sale as the next stage in the company's development after more than a decade of growth.

"Following Dilosk's growth and success since its inception in 2013 and the acquisition of ICS Mortgages in 2014, 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," said Fergal McGrath, Chief Executive Officer and Co-Founder of Dilosk.

Pepper Advantage said the acquisition is part of its expansion strategy and will increase its scale in Ireland.

"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 with market-leading analytics and oversight and expand 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," said Fraser Gemmell, Group Chief Executive Officer of Pepper Advantage.