An investor group led by Warburg Pincus from funds managed by Blackstone has entered into a definitive agreement to acquire by an Exeter Finance LLC, an indirect auto finance company.
Exeter is a rapidly growing tech-enabled indirect auto lender, with a managed loan portfolio. The company underwrites, purchases, services and securitizes retail installment contracts.
“We are thrilled to partner with the Warburg Pincus-led investor group as we enter this next phase of growth for Exeter,” said Jason Grubb, Exeter’s chief executive officer. “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.”
Warburg Pincus is an investor in the auto industry across a variety of verticals including auto lenders, rental car providers, e-commerce distribution, and software platforms. Its investments in the auto value chain include: Santander Consumer USA, 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,” aid Dan Zilberman, managing director and head of special situations, Warburg Pincus. “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. 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.
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.