American Capital has combined three portfolio companies within its Financial Services Group, in order to form a diversified commercial finance holding company called Core Financial Group. The three companies are: Core Business Credit, an asset-based lender; Velocity Financial Group, a venture debt finance and mid-market equipment leasing company; and Oceana Media Finance, a film finance company. No financial terms were disclosed.
American Capital Ltd. (Nasdaq: ACAS) announced today that it has completed the combination of three portfolio companies within its Financial Services Group to create Core Financial Group, a diversified commercial finance holding company. The strategic combination brings together Core Business Credit (“Core”), an asset-based lender, Velocity Financial Group (“Velocity”), a venture debt finance and middle market equipment leasing company, and Oceana Media Finance (“Oceana”), a film finance company. Each company will maintain its market presence under its current name while benefiting from the strong capitalization and synergies resulting from the combination.
“American Capital’s Financial Services Group invests in strong management teams to build industry leading enterprises within the financial services space,” said Bob Grunewald, Managing Director, Financial Services Group. “We are very pleased with the progress of Core, Velocity and Oceana. By bringing these firms together onto one platform we have created a well-capitalized, diverse commercial finance company that will take advantage of the attractive risk-return opportunities in this market.”
“Core, Velocity and Oceana are known for their creative, reliable and relationship-driven approach to lending. This combination will enhance our ability and extend our national reach to serve our clients,” said Michael Haddad, CEO of Core Financial Group.
ABOUT CORE FINANCIAL GROUP
Core Financial Group is a diversified commercial finance company headquartered in Dallas with offices in Atlanta, Boston, Chicago, Houston, Los Angeles and Silicon Valley. It serves as the holding company for the following business lines:
— Core Business Credit: Core makes asset-based loans secured by accounts
receivable, inventory, equipment and owner-occupied real estate. It
serves clients with financing needs of $7 million to $30 million.
— Velocity Financial Group: Velocity finances companies backed by top tier
venture capital firms and leases technology and other equipment to
middle market companies in $1 million to $5 million transactions.
— Oceana Media Finance: Oceana provides short term financing to fund the
production and marketing of feature films with financing needs of $2
million to $7 million.
For more information about Core Financial Group, visit www.corefg.com.
ABOUT AMERICAN CAPITAL FINANCIAL SERVICES GROUP
The Financial Services Group offers capital solutions for consumer and commercial finance, insurance and asset management companies. The Group invests throughout the capital structure, including senior debt, subordinated debt and equity, and investments up to $400 million in each transaction. Companies interested in learning more about American Capital’s Financial Services Group should contact Bob Grunewald, Managing Director, at (301) 951-6122.
ABOUT AMERICAN CAPITAL
American Capital is a publicly traded private equity firm and global asset manager. American Capital, both directly and through its asset management business, originates, underwrites and manages investments in middle market private equity, leveraged finance, real estate and structured products. Founded in 1986, American Capital has $14 billion(1) in capital resources under management and ten offices in the U.S., Europe and Asia. For further information, please refer to www.AmericanCapital.com