Värde will provide up to C$275 million to invest in non-prime consumer loans
MINNEAPOLIS, MN and TORONTO, March 10, 2015 /CNW/ - Värde Partners ("Värde") and Canaccede Financial Group Ltd. ("Canaccede") announced today that Värde has entered into a purchase agreement to acquire a 51% majority equity stake in Canaccede. As part of the transaction, Värde 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 Värde. "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 Värde 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 Värde."
GMP Securities L.P., Fredrikson & Byron, P.A. and Stikeman Elliott LLP represented Värde, and Grant Thornton LLP and SMG Law Firm represented Canaccede.
About Värde Partners
Värde 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, Värde 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 Canaccede Financial Group Ltd.
For further information: Andrea Ellison, Mansfield Inc., 416-599-0024, ext. 229, [email protected]