The potential sale of Exeter Finance highlights the impediment that private equity ownership can pose to financial institutions’ operations. Private equity firm Warburg Pincus is reportedly considering a sale of independent subprime auto lender Exeter Finance of up to $3 billion. New York-based Warburg acquired Exeter in 2021 with the backing of Blackstone. Private equity ownership of financial institutions can bring challenges, Eric Orenstein, senior director, non-bank financial institutions at Fitch Ratings, told Auto Finance News. “Private equity ownership remains a rating constraint, as it increases the possibility […]
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