York Capital makes growth investment in F1 Payments

The investment is set to accelerate the company’s growth both organically and through acquisitions, the firm said.

York Capital Management has backed fintech provider F1 Payments, the firm told PE Hub.

The firm made strategic recapitalization and growth investment from York Capital’s mid-market private equity fund, York Special Opportunities Fund III. The dedicated fund closed on $800 million earlier this year.

Leonis Partners acted as financial advisor to F1 Payments.

The investment is set to accelerate the company’s growth both organically and through acquisitions, the firm said.

“F1 Payments has built an impressive business with runway for growth in just a short amount of time,” said Harish Nataraj, managing director at York Capital.

“It’s an exciting time in payments and we are pleased to have the opportunity to support the Company’s profitable growth strategy and upward trajectory with our financial and operational expertise,” Nataraj added.

F1 Payments, based in Austin, Texas, says that it delivers quick, secure and easy-to-use payments services to financial agents, merchants and institutions.

With the new investment, the company will see some reshuffling of the leadership team.

Chad Anselmo, president of F1, has been promoted to the CEO post, while founder Shane Hibbeler has retired. Sunil Kappagoda, a 30-year fintech executive who previously held senior leadership positions at Verifone and Boston Consulting Group, has joined F1 Payments as chairman of the Board of Directors.

York Capital Management is a global alternative investment firm that focuses on identifying mispriced risk through divergent views of markets and catalysts. The firm has private equity strategy with 16 investment team members overseeing 22 portfolio companies.

Correction: This report has been updated with the correct headquarters for F1 Payments.