What do auto lenders Condor Capital Corp., Western Funding Inc., and Blackhawk Finance have in common?
All three were acquired by Advanced Lending & Portfolio Services (ALPS), a division of Westlake Financial Services, building up the lender’s strategy for 2016: to seek more mergers and acquisitions in the industry, executives told Auto Finance News.
“A lot of auto finance companies out there now, especially as it pertains to buy-here, pay-here platforms, are looking to sell their portfolio, which is a common method for BHPH to generate capital,” said ALPS Assistant Vice President Todd Laruffa. “In 2016, we’ll be targeting near-prime, nationwide, or standalone companies that are looking to move an investment that they have made, perhaps. We are also shifting more toward a merger model, rather than acquisition.”
ALPS specializes in loan portfolio acquisitions from BHPH finance companies, as well as dealerships. Providing revolving credit lines to dealers is also on the ALPS agenda this year, said Michael Leon, the company’s M&A broker.
“Capital will be the main source of their dealerships to grow and be more successful, and we are willing to provide that capital,” he said.
Los Angeles-based Westlake works with 50,000 auto and motorcycle dealers nationwide.
