LSQ Funding scores $100 mln in Lovell Minnick-led round

Lovell Minnick Partners LLC has led a $100 million round for LSQ Funding Group, a provider of working capital solutions for small and mid-sized businesses. J.P. Morgan Securities LLC was financial advisor to Lovell Minnick on the transaction while The Cosine Group, a division of Armory Securities LLC, was financial advisor to LSQ Funding.

PRESS RELEASE

ORLANDO, FL (April 15, 2015) — LSQ Funding Group, a leading technology-enabled provider of working capital solutions for small- and mid-sized businesses, today announced that it has received a capital investment of over $100 million in a transaction led by Lovell Minnick Partners LLC, a private equity firm that specializes in the global financial services industry.

The investment will support LSQ Funding’s growth strategies, which are differentiated by a decade of technology innovation, credit IP, and bank partnerships. These differentiators have accelerated LSQ’s growth, which exceeded 85 percent in 2014. Over its twenty years of operating history, LSQ has provided more than $10 billion in invoice advances.

“We’re excited to add an equity partner with proven success supporting high-growth companies like ours,” said LSQ Funding’s CEO and founder Max Eliscu. “We will use this incremental capital to accelerate our investment in automation, revolutionizing the process by which businesses unlock the liquidity tied up in their unpaid invoices. We have always been committed to helping businesses of all sizes, from start-ups sending their first invoices to established companies managing complex supply chains, easily access working capital. We’re now bringing that capability to micro-businesses through automation.”

“The millions of small businesses in the U.S. that experience cash shortages as a result of success —and sometimes obstacles — deserve to have a company like LSQ Funding in their corner to help them meet such challenges,” added Lovell Minnick Managing Director John Cochran. “LSQ’s management team has built an industry-leading brand and an exemplary bank referral partnership model and is now aggressively pursuing automation that will serve even more small businesses. We are excited to bring our experience in specialty finance and in under-served credit markets to the partnership with this innovative team.”

J.P. Morgan Securities LLC served as financial advisor and Kirkland & Ellis LLP served as legal advisor to Lovell Minnick. The Cosine Group, a division of Armory Securities, LLC, served as financial advisor and Wilson Sonsini Goodrich & Rosati LLP served as legal advisor to LSQ Funding.
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About LSQ Funding Group
LSQ Funding is one of the country’s largest independent accounts receivable financing companies.

Founded in 1996 in the Orlando area, LSQ provides specialized accounts receivable financing to growing companies throughout the U.S., offering competitive rates, customized financing arrangements, and personalized service to help them improve profitability and financial security. The company’s proprietary accounts receivable technology enables accounts receivable financing at all levels, ranging from multi-million-dollar corporations to small businesses. For more information, please visit www.lsq.com.

About Lovell Minnick
Lovell Minnick Partners LLC is a private equity firm with expertise in investing in the financial and related business services sectors. Lovell Minnick provides developing companies with equity capital to support private company recapitalizations, leveraged buyouts, and pursue growth initiatives. Since its inception in 1999, Lovell Minnick Partners has raised over $1.2 billion in committed capital and has completed investments in over 30 companies. Targeted investment areas include asset management, financial product distribution, insurance, banks, specialty finance, and related technology and business services. Lovell Minnick has a demonstrated track record of increasing value through a variety of methods including internal investment, acquisitions, and prudent use of leverage. For more information, please visit www.lovellminnick.com.