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Corsair Capital is said to scoop up Repay

Corsair Capital LLC, a veteran financial services investor, has scooped up Realtime Electronics Payments, or Repay, two sources familiar with the situation said.

How much Corsair paid is unclear. On Sept. 14, New Capital Partners said it had exited Repay but didn’t identify the buyer. A third source said Repay’s acquirer was a “large, financial, buyer.”

“Corsair is buying Repay,” one of the two sources said.

Established in 2006, Repay, of Atlanta, provides electronic transaction processing services for more than 8,000 merchants, including credit and debit cards, gift cards, ACH, and bank account verification.

New Capital is a lower-middle-market firm that invests in healthcare services and IT, financial services and IT, as well as general business services. The firm acquired a majority stake in Repay in 2013. In the spring, New Capital put Repay up for sale, hiring William Blair & Co to run an auction, Buyouts reported in March. William Blair confirmed Sept. 20 that Corsair acquired Repay through a recapitalization. The deal closed Sept. 1, a statement said.

New Capital was seeking bids of $100 million to $150 million for the company, Buyouts said.

J.P. Morgan & Co launched Corsair in 1992 to take advantage of opportunities created by the savings-and-loan crisis, Buyouts has reported. The firm managed two third-party funds from within the investment bank before spinning out as an independent entity in 2005. Corsair has invested in several banks, including United Community Bank, National City Corp and East West Bancorp.

In 2010, Corsair began fundraising for its fourth fund, which had a $2 billion target, Buyouts said. Corsair IV Financial Services Capital Partners ended up raising $863 million, Preqin said.

The “Corsair name from time to time is mentioned in the marketplace followed by reporter inquiries,” a statement from the PE firm said. “In that regard, Corsair has never made a public announcement on the subject about which you are inquiring and therefore has no comment.”

NCP declined comment. Repay could not be reached.

Action Item: Contact Corsair: corsair@corsair-capital.com

Update: This story has been updated to reflect a statement from Corsair and to include William Blair’s confirmation that Corsair did buy Repay. 

Photo courtesy ©iStock/radifanil