U.S. alternative investment firm Värde Partners has agreed to purchase a 51 percent equity stake in Canaccede Financial Group Ltd, an alternative financial services provider based in London, Ontario. The acquisition’s value was not disclosed. As part of the transaction, Värde has agreed to commit up to $275 million of funding for Affirm Financial Services Inc, Canaccede’s non-prime consumer lending business in Canada. Värde said the investment will help Canaccede expand and deliver its consumer finance offerings. Last June, Värde raised US$2 billion in the final close of its latest distressed and credit investments fund.
Varde Partners Acquires Majority Stake In Canaccede Financial Group Ltd.
Varde will provide up to C$275 million to invest in non-prime consumer loans
MINNEAPOLIS and TORONTO, March 4, 2015 /CNW/ — Varde Partners (“Varde”) and Canaccede Financial Group Ltd. (“Canaccede”) announced today that Varde has entered into a purchase agreement to acquire a 51% majority equity stake in Canaccede. As part of the transaction, Varde has also committed up to an additional C$275 million of financing to grow Affirm Financial Services, Inc., Canaccede’s non-prime consumer lending business in Canada.
Canaccede provides alternative financial services to Canadians, offering unsecured credit cards and personal installment loans and purchasing performing, non-performing or insolvency/bankruptcy consumer loan and credit card portfolios from financial institutions. To date, Canaccede has strategically invested over C$100mm to acquire consumer receivables and is one of the largest consumer finance investment firms in the Canadian market.
“Our investment will help Canaccede expand its innovative consumer finance offerings and enhance their ability to deliver them to the consumer,” said Chris Giles, Senior Managing Director of Varde. “Andy Szemenyei, Scott Coffin and the entire management team at Canaccede have proven to be excellent business partners and we are excited to be investing in Canaccede. The team’s experience in consumer finance, combined with the opportunity in the Canadian market, positions Canaccede for future success.”
Andy Szemenyei, Chief Executive Officer of Canaccede stated, “We are excited about partnering with Varde and cooperatively delivering competitive products and high value service to Canadian consumers.”
Scott Coffin, President of Canaccede said, “The consumer finance market has changed significantly in recent years, and the near-prime and non-prime consumer is dramatically under-served. Affirm Financial is well positioned to service this need with our mix of innovative consumer loan and credit card solutions. Fully capitalizing on this opportunity requires the right financial partner, and we are very pleased to extend our twelve year partnership with Varde.”
GMP Securities L.P., Fredrikson & Byron, P.A. and Stikeman Elliott LLP represented Varde, and Grant Thornton LLP and SMG Law Firm represented Canaccede.
About Varde Partners
Varde Partners is a $9.0 billion global alternative investment firm that employs a credit-oriented, value-based approach to investing across a broad array of geographies, segments and asset types, including real estate, corporate credit, residential mortgages, specialty finance, transportation and infrastructure. The Firm provides the highest level of service to a select group of sophisticated global investors including foundations and endowments, pension plans, insurance companies, other institutional investors and private clients. Founded in 1993, Varde employs 200 people with offices in Minneapolis, London and Singapore.
About Canaccede Financial Group
Canaccede Financial Group is a rapidly-growing firm with a vision to be the leading provider of alternative financial services solutions to the Canadian consumer credit market. It operates two main synergistic businesses, Canaccede Investments and Affirm Financial Services, established in 2008 and 2010 respectively. Canaccede employs 43 people with offices in Toronto and London, Ontario. For more information, visit www.canaccede.com and www.affirmfinancial.ca.
SOURCE Varde Partners
For further information: Steve Bruce / Taylor Ingraham, ASC Advisors, (203) 992-1230
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