Canadian consumer lender SNAP Financial Group has secured a $60 million investment from U.S. mid-market private equity firm FFL. The partnership with FFL is intended to assist SNAP in growing to meet market demand, expanding its services and exploring channels where it can provide new and effective financial solutions. Based in Vanvouver, SNAP is primarily focused on the home and auto finance segments. Since its founding in 2006, it has originated more than $600 million of consumer loans. Based in San Francisco, FFL specializes in investing in a range of sectors, including financial services.
FFL Invests in SNAP Financial Group
FFL, a middle market private equity firm focused on growth investments, today announced that it has completed a CAN$60 million investment in SNAP Financial Group (SNAP), a leading independent consumer lender in Canada. The founders of SNAP will retain a significant financial interest in the company and will continue to manage operations.
Headquartered in Vancouver, British Columbia, SNAP does business primarily in the home and auto finance segments. The company was founded in 2006 by Co-CEOs David Nickel and John Stout, and has originated more than CAN$600 million of consumer loans.
SNAP’s home finance line is focused on loans for residential HVAC systems, windows, and other home improvement purchases for prime consumers. These loans are originated through a network of affiliated in-home repair businesses and equipment dealers. In addition, SNAP has exclusive relationships with leading OEM and dealer networks—including Carrier, Lennox, Trane, York and Direct Energy—for whom SNAP provides custom financing programs. The company’s auto finance business provides financing for new and used vehicles for near-prime consumers, largely through a network of approximately 4,000 Canadian auto dealers.
“We are very excited to bring FFL on board at SNAP Financial,” said Dave Nickel, Co-CEO of SNAP. “FFL will be a great partner on both the financial and operational fronts as we continue to grow to meet market demand, expand our services and explore new channels where SNAP can provide new and effective financial solutions.”
FFL has deep experience investing in financial services businesses across a variety of segments. The firm’s investments include AAG, AmericanWest Bank, Green Bancorp, Montpelier Re, and Strategic Investment Group.
“David and John have built a very successful business that plays an important role in providing tailored financial solutions in strategic market niches, and we are privileged to have the opportunity partner with them to support SNAP’s ongoing growth ” added Cas Schneller, Managing Director of FFL. “We believe SNAP has the market knowledge and talent to capitalize on a tremendous growth opportunity.”
FFL is a San Francisco-based US middle market private equity firm. For over fifteen years, the firm has helped build industry-leading companies, providing capital and advice to exceptional management teams to grow businesses and unlock value. FFL has deep experience in investing and operations, and has brought large-company best practices and professional networks to smaller companies. Business growth has provided over 75% of the value created by the FFL for its investors. FFL has $2.6 billion under management, and invests in consumer products and services, financial services, healthcare services, and business services.
About SNAP Financial Group
SNAP Financial Group is one of Canada’s premier consumer and commercial lenders offering a full range of outsourced funding solutions to our vendor partners. SNAP provides in-house underwriting capabilities, financing systems and software solutions so that businesses can easily incorporate financing into their processes and offer additional payment options for their customers. Serving auto, home improvement, insurance and commercial customers, SNAP has helped small businesses grow by facilitating over $1B in financial transactions.
Contact for FFL:
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