(Bloomberg) -- Cinven Ltd. and CVC Capital Partners are weighing an initial public offering of consumer credit provider NewDay, according to people familiar with the matter.

The private equity firms are working with advisers including Bank of America Corp. and UBS Group AG on the plans, the people said, asking not to be identified discussing confidential information. NewDay could be valued at more than 2 billion pounds ($2.8 billion) in an IPO and a listing may take place later this year or in early 2022, the people said.

Deliberations are ongoing and the timing and value of any IPO could change depending on market sentiment, according to the people. Representatives for Bank of America, Cinven, CVC, NewDay and UBS declined to comment.

Cinven and CVC agreed to buy NewDay from Varde Partners in 2016. The company offers financing to close to 5 million customers in the U.K., including those with lower credit scores, and helps them to manage their borrowing. It also offers users the option to buy now, pay later on purchases.

NewDay is led by Chief Executive Officer John Hourican, the former boss of Royal Bank of Scotland’s investment bank. The company reported an adjusted earnings before interest, taxes, depreciation and amortization loss of 12 million pounds in 2020, as it made provisions for potential future credit losses incurred as a result of Covid-19’s economic impact.

Meanwhile, Together Financial Services Ltd., another U.K. lender focused on mortgages and secured loans, is weighing a sale that could value the business at around 1 billion pounds, Bloomberg reported this month.

(Adds value in second paragraph, 2020 loss in fifth paragraph.)

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