DriverUp hopes to access the term securitization market in June, Co-Founder Sam Ellis told AFN last week. The company first hinted at a play in the ABS market earlier this month at Auto Finance Innovation 2016.
“We are contemplating helping institutional investors that are looking to set up a program to help them securitize our assets while we would still do the servicing,” Ellis told attendees. “An efficient term securitization market helps everyone, but we know there are always going to be disruptions in capital markets, and we like the idea of an alternative source of financing.”
DriverUp, started by Dallas-based Sierra Auto Finance in February 2015, allows hedge funds, endowments, and high-net-worth individuals to invest in the auto finance industry directly.