New Market Entrant Creates More Sub-Prime Finance Options For Automotive Industry
ATLANTA – Global Lending Services LLC, an Atlanta-based auto finance company founded earlier this year by auto industry veteran, Douglas Duncan, has acquired the business of Resurgent Auto Finance, an established sub-prime auto loan originator. The acquisition includes a $38 million loan portfolio as well as a funding and servicing platform.
"This is a very important milestone for Global Lending Services,” said Duncan. “By making this acquisition, we now have a platform in place that will enable us to create a scalable sub-prime auto finance business and execute our plan to establish a national presence in the market. Resurgent Auto Finance is an exceptional company. It has state-of-the-art technology and analytics, very disciplined processes, and many talented people," added Duncan.
Partnership With BlueMountain Capital Management
Global Lending Services also announced it has entered into a partnership with New York-based investment firm, BlueMountain Capital Management. Several BlueMountain managed funds and Duncan will collectively invest $100 million in capital. BlueMountain will have a majority interest in the company, and Duncan will serve as Chairman.
“The opportunity to partner with BlueMountain was strategic given the significant amount of capital required in the auto finance business,” stated Duncan. Global Lending Services Chief Executive Officer, Gary Lorenz, added, “With $100 million in committed capital, we are well positioned to secure additional debt, as needed, to support our growth. BlueMountain also has a deep understanding of the sub-prime auto finance sector and an experienced team of professionals that will add significant value to our business."
Loan Agreement With UBS Real Estate Securities Inc.
In a related matter, Global Lending Services secured a senior debt facility with UBS Real Estate Securities Inc. for $75 million. "The UBS facility provides the foundation for our debt program, which will scale as we grow our loan portfolio,” stated Mark McCall, Global Lending Services Chief Financial Officer. “The UBS team established a facility that meets our specific needs, and we are very excited to partner with them as we build the business,” McCall added.
About Global Lending Services
Global Lending Services LLC provides automotive financing to automobile dealerships in the United States. Formed using leading technologies and analytics, the company strives to provide products and services to help customers with basic transportation needs while creating a dealer-friendly environment for its business partners. (www.glsllc.com)
Founder Douglas Duncan has over 25 years of experience in the automotive finance and insurance industry. In 1992 he founded Safe-Guard Products International, a leading administrator of warranty products and services, and continues to serve as Chairman of the Board.
Global Lending Services is operated by an executive management team with well over 100 years of experience in the auto finance industry. Gary Lorenz, Chief Executive Officer of the company, previously served as President of Wells Fargo Auto Finance.
About BlueMountain Capital Management
Founded in 2003, BlueMountain manages $10 billion in assets across a diverse set of strategies in the credit markets. With offices in New York and London, BlueMountain is a leader in fundamental long/short, structured credit, arbitrage and equity derivatives. The firm’s distinctive investment approach integrates fundamental company research, advanced quantitative methods, and proven market and product knowledge. BlueMountain’s investment team operates in a highly integrated manner, with risk management as a key element of the firm’s investment process.
08/14/12
