Perella Weinberg Partners will merge its two auto loan origination and servicing platforms, Flagship Credit Acceptance and CarFinance Capital, into a single, national automotive lending company, the asset-management firm announced today. The combined auto financier will have more than $2 billion of assets, making it one of the 50 largest auto lenders nationwide, according to Auto Finance News data.
Perella Weinberg Partner David Schiff said that the combination will better position these companies to provide subprime customers access to credit in a “high quality, fair, professional, and transparent manner.” Flagship Chief Executive Michael Ritter will become CEO of the combined company; a Perella Weinberg spokesman declined to comment on the new role for CarFinance CEO Jim Landy. Analysts expect increased M&A activity in subprime auto finance in the coming year.
