Colonnade Securities Advises OpenRoad Lending on its sale to Clarion Capital Partners on sale
OpenRoad Lending and Clarion Capital Partners announced that Claon has completed a strategic investment in the fast-growing auto finance company. Chris Goodman, Jeff Austin, and Joseph Everly, co-founders of OpenRoad, will continue their roles as CEO, CFO and CTO respectively. The terms of the transaction were not disclosed.
OpenRoad, founded in 2009 by the same executives who pioneered RoadLoans, is a partner of both banks, credit unions and institutional investors to help consumers refinance their existing auto loans, lower their OpenRoad offers premium vehicle protection products, such as GAP, vehicle service contracts, and paintless dent repair. The company uses best-in-class sales and fulfillment processes, strategic marketing and a proprietary software platform to provide their lending partners with high-quality direct loans that meet each lender's underwriting criteria.
OpenRoad currently concentrates all of its efforts on auto refinancing. OpenRoad plans to capitalize on its market position and explore other business lines, such as lending for auto purchases, lease buyouts, car insurance and other consumer verticals. OpenRoad will leverage this investment to broaden its marketing channels and grow organically and through acquisition.
Over the past 12 years, we've built a tremendous operation known for saving money and providing dependable, modern online experience," Goodman said. "We expect demand for auto refinancing to continue to increase as smart consumers look for ways to lower their expenses. This, combined with the rapid adoption of digital lending, will lead to significant growth for OpenRoad. We are excited to partner with Clarion and gain their extraordinary expertise, resources and network to grow our business. We deliver the best financing experience in the market.
"OpenRoad's exceptional customer value proposition, proven operational foundation, and commitment to meeting the needs of its lending partners is what drove us to the business and what provided real opportunities for expansion." We are excited to partner with Chris and the management team to expand their offering within the core refinancing product and beyond. Both of our teams are committed to excellence, integrity and collaboration. We believe we have a great formula for success."
Colonnade Securities LLC was the sole financial advisor of OpenRoad during the transaction. Munsch Hardt Kopf & Harr, PC, served as a legal counsel to OpenRoad. Clarion received legal advice from Akerman LLP and Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, PC. The money for the transaction was provided by funds managed by Madison Capital Funding and PennantPark Investment Advisers, LLC.
About OpenRoad Lending, or Lendering?
OpenRoad Lending is an online, direct-to-consumer auto finance company focused primarily on refinancing. OpenRoad helps consumers with all kinds of credit in 44 states and is the only direct lender in the country that is providing loans to auto loans.
OpenRoad was recently recognized by Inc. Magazine as the 37th fastest growing private company in the United States. They were named a "Best Place to Work" by the Dallas Business Journal and voted four-time national winner of "The Best and Brightest Places to work."
Through www.OpenRoadLending.com, consumers can apply for financing and complete the loan, with the help of the online application process and approval process.
OpenRoad has originated more than $3 billion in auto loans. The company is in Fort Worth, Texas.
About Clarion Capital Partners, Inc.
Clarion Capital Partners is a New York based private equity firm that is focused on making equity investments in lower middle market growth companies. Clarion's industry focus is financial services, business & healthcare services and media, entertainment and technology, and consumer / retail. More information on Clarion can be found at www.Clarion-Capital.com.
Gina Cocking, [email protected] Contact: [Kena Chining], [seulio protected].
SOURCE Colonnade Securities LLC - SURCE SORCE CURRENTAL / LLC S.S.