Perella Weinberg Partners Asset Based Value Strategy Announces Merger of Its Two Auto Finance Platforms

Combination to Create a Market Leading Independent Auto Finance Company

CHADDS FORD, Pa. & NEW YORK--()--Perella Weinberg Partners Asset Based Value Strategy (“ABV”), a leading alternative asset management strategy and a unit of Perella Weinberg Partners, today announced that it will merge its two auto loan origination and servicing platforms, Flagship Credit Acceptance (“Flagship”) and CarFinance Capital (“CarFinance”) (together, the “combined company”), into a single, national automotive lending company. The combined company will have total assets in excess of $2 billion.

“Combining with CarFinance at this point in the companies’ growth cycles will create a leading automotive finance company with increased scale and greater flexibility”

“Since forming Flagship and CarFinance, we have been pleased with the performance and strong execution of both companies,” said David Schiff, Partner at Perella Weinberg Partners and Portfolio Manager of the Asset Based Value Strategy. “Together, the two companies will create a top-tier independent auto finance company with enhanced scale, lower cost of capital, superior cost controls and more efficient access to the capital markets. Most importantly, the combination will better position these companies to provide a critical segment of the population access to credit in a first-class, fair, professional, and transparent manner. We are confident that the combined company will continue to have industry-leading standards and will achieve greater success than either Flagship or CarFinance could on a standalone basis.”

“Combining with CarFinance at this point in the companies’ growth cycles will create a leading automotive finance company with increased scale and greater flexibility,” said Michael C. Ritter, Chief Executive Officer of Flagship, who will become the Chief Executive Officer of the combined company. “Importantly, as a combined company, we will be able to better serve our dealer base through our existing brands and products and continue to provide essential financing to under-served consumers so that they can procure transportation to perform necessary daily needs. I look forward to working closely with my new partners at CarFinance and our sponsors at ABV to realize the full potential of the combined company.”

David Schiff said, “On behalf of the Board of Directors of CarFinance, I would like to thank Jim for his valuable contributions in establishing CarFinance as a leading indirect and direct lender to the auto finance industry. We partnered with two of the strongest and most accomplished management teams in the sector in Flagship and CarFinance, and we appreciate their efforts in creating two of the most successful players in the space. We look forward to working with Jim and Mike as we bring together these two complementary platforms.”

Since their inceptions, Flagship and CarFinance have each established well-recognized and accepted term asset-backed securitization programs obtaining ratings from multiple nationally recognized rating agencies. Each has also entered into bank warehouse facilities from some of the most prominent financial institutions in the world.

The combined company will be a leading, independent auto finance lender with an enhanced national presence and wide geographic diversity. On a combined basis the platforms currently originate approximately $1.2 billion of annual volume and employ approximately 600 employees. Headquartered in Chadds Ford, PA with operational offices in Irvine, CA, Phoenix, Arizona and Irving, TX, the combined company will benefit from a network of more than 7,700 automotive dealers nationwide, as well as from an active direct lending division that is helping to transform the auto financing experience.

The consummation of the merger is subject to the receipt of certain regulatory approvals and other customary closing conditions for a transaction of this type.

About Perella Weinberg Partners Asset Based Value Strategy

Perella Weinberg Partners Asset Based Value Strategy is a leading post-financial crisis provider of U.S. specialty finance solutions. Since inception in 2008, the strategy has grown to manage approximately $2.1 billion in equity capital through a number of different investment vehicles. Perella Weinberg Partners Asset Based Value Strategy can deliver significant capital, technical expertise and infrastructure in a wide range of asset classes and structures, including both real and financial assets. Capital for the strategy is contributed by, among others, a diversified group of institutional investors who seek to invest in compelling opportunities.

About Perella Weinberg Partners

Perella Weinberg Partners is a leading independent, client-focused financial services firm providing advisory and asset management services to a broad, global client base, including corporations, institutions and governments. The Advisory business advises clients on mergers, acquisitions, defense advisory, financial restructuring, private capital raising, and pension matters. The Asset Management business includes a suite of hedge fund strategies, private investment funds (including real estate) and outsourced CIO solutions. Together with its affiliates, the Asset Management business has capital commitments and managed assets of approximately $11.3 billion. Founded in 2006 and with more than 400 employees, Perella Weinberg Partners maintains offices in New York, London, Abu Dhabi, Denver, Dubai, and San Francisco. For more information on Perella Weinberg Partners, please visit http://www.pwpartners.com.

About Flagship Acceptance Corp

Flagship, headquartered on the East Coast in Pennsylvania, was reconstituted in 2010 with an equity investment by affiliates of Perella Weinberg Partners Asset Based Value Strategy and has successfully grown its portfolio to over $900 million in managed receivables. The company currently purchases indirect auto contracts from a network of over 5,400 dealers in 39 states.

About CarFinance Capital

CarFinance Capital, headquartered on the West Coast in California, initiated operations in 2011 with an equity investment from affiliates of Perella Weinberg Partners Asset Based Value Strategy. The company has a managed portfolio of approximately $897 million, which includes a mix of dealer indirect contracts and direct-to-consumer new purchase and refinance loans. The company currently purchases indirect auto contracts from a network of over 3,200 dealers in 24 states and originates direct to consumer in 41 states.

Contacts

Perella Weinberg Partners Media:
Perella Weinberg Partners
Kara Findlay, 212-287-3197
or
Sard Verbinnen & Co
Denise DesChenes / Renee Soto, 212-687-8080
or
Flagship Credit Media:
Joele Frank
Jonathan Keehner / Andrew Siegel, 212-355-4449

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