An investor group led by Warburg Pincus has agreed to acquire auto lender Exeter Finance from Blackstone. No financial terms were disclosed. Citi served as lead financial advisor for Exeter Finance and Blackstone while J.P. Morgan served as financial advisor to the acquirers.
IRVING, Texas, June 28, 2021 /PRNewswire/ — Exeter Finance LLC, a leading indirect auto finance company, announced today that it has entered into a definitive agreement to be acquired by an investor group led by Warburg Pincus from funds managed by Blackstone (NYSE:BX). Terms of the private transaction were not disclosed.
Exeter is a rapidly growing tech-enabled indirect auto lender, with a managed loan portfolio of more than $7 billion. The company underwrites, purchases, services and securitizes retail installment contracts from more than 11,000 auto dealers and 475,000 customers nationwide. Exeter has leveraged its extensive automobile finance industry knowledge to deliver leading-edge technology and financial solutions to more than one million customers.
“We are thrilled to partner with the Warburg Pincus-led investor group as we enter this next phase of growth for Exeter. We have made tremendous progress under Blackstone’s ownership establishing Exeter as an industry leader, and I’m proud of the team’s solid execution,” said Jason Grubb, Exeter’s Chief Executive Officer.
Warburg Pincus is a long-time, active investor in the auto industry across a variety of verticals including auto lenders, rental car providers, e-commerce distribution, and software platforms. Notable investments in the auto value chain include: Santander Consumer USA (SCUSA), China Auto Rental, Au Financiers, Uxin, defi SOLUTIONS, Cango, and Car Trade.
“Exeter Finance is a pioneer in offering innovative financial solutions at scale across the credit spectrum. We have over a decade-long close and successful working relationship with this best-in-class management team and are looking forward to partnering with them again in Exeter Finance,” said Dan Zilberman, Managing Director and Head of Special Situations, Warburg Pincus. “We are excited to partner with Jason and the Exeter Finance team to further build on the company’s leading market position and accelerate future growth,” added Eric Friedman, Managing Director, Warburg Pincus.
The transaction is expected to close by the end of 2021 and is subject to customary closing conditions. Jason Grubb will remain as CEO and a meaningful investor in the company, alongside the current Exeter management team.
Citi served as the lead financial advisor for Exeter Finance and Blackstone, along with Barclays, Deutsche Bank and Wells Fargo. Skadden, Arps, Slate, Meagher & Flom LLP served as legal advisor to Exeter Finance and Blackstone. J.P. Morgan served as financial advisor and Wachtell, Lipton, Rosen & Katz served as legal advisor to the acquirers.
About Exeter Finance
Exeter Finance LLC is an indirect auto finance company headquartered in Irving, Texas. Founded in 2006, the company underwrites, purchases, services, and securitizes retail installment contracts from U.S. automobile dealers. Exeter works with more than 11,000 dealers and 475,000 customers nationwide providing indirect financing for both new and used vehicles. The company has a serviced finance portfolio of more than $7 billion. For more information, visit www.exeterfinance.com.
About Warburg Pincus
Warburg Pincus LLC is a leading global growth investor. The firm has more than $60 billion in private equity assets under management. The firm’s active portfolio of more than 200 companies is highly diversified by stage, sector, and geography. Warburg Pincus is an experienced partner to management teams seeking to build durable companies with sustainable value. Founded in 1966, Warburg Pincus has raised 19 private equity funds, which have invested more than $90 billion in over 930 companies in more than 40 countries. The firm is headquartered in New York with offices in Amsterdam, Beijing, Berlin, Hong Kong, Houston, London, Luxembourg, Mumbai, Mauritius, San Francisco, São Paulo, Shanghai, and Singapore. For more information please visit www.warburgpincus.com.