Chartwell Advises Spring Oaks Capital on Structured Capital Investment Alongside New $150 Million Credit Facility

MINNEAPOLIS, Minn. --Chartwell is pleased to announce that Spring Oaks Capital, LLC (“Spring Oaks” or the “Company”) has received a substantial structured capital investment, accelerating the Company’s establishment as the premier, technology-enabled consumer debt investment and collections platform in the industry.

[article_ad]

The substantial private investment, coupled with a $150 million senior secured revolving credit facility provided solely by Ares Global Management, LLC (“Ares”), will support the Company’s opportunistic portfolio acquisition strategy along with the continued development of industry leading technology tools. Further supporting the Company’s growth, Ares has included an incremental $100 million of capital, via an accordion, available for additional capital deployment. In partnering with the leading provider of credit solutions to the consumer finance sector, Spring Oaks is positioned to execute upon a robust pipeline of investment opportunities. Simultaneous with closing, Spring Oaks financed a meaningful investment in selected consumer finance assets, with continued acquisitions scheduled during the remainder of 2020.

Chartwell served as Spring Oaks’ exclusive financial advisor, providing strategic counsel to the Company as it evaluated its capital structure alternatives in pursuit of sustainable growth. The junior structured capital infusion will allow Spring Oaks to build a platform that empowers consumers on their journey to resolve the burden of financial debt through machine learning, behavioral science, and deep industry expertise. The Company now has the necessary capital to rapidly scale its portfolio acquisition platform, leveraging unmatched compliance procedures, best-in-class technology platform, and a team of long-standing industry executives. The investor’s belief in the Company is evidenced by the substantial capital commitment, through both the initial investment and significant monetary commitment in the future.

Spring Oaks Capital, LLC is an innovative and technology-focused consumer debt purchasing and collections platform spearheaded by some of the most credible and experienced executives in the industry. The Company leverages data-driven analytics, AI, and machine learning integration to enhance underwriting, purchasing, and collections, supported by industry-leading cloud-based tools. The Company maintains an unmatched compliance focus, ethically collecting portfolios with a team-based approach.

Chartwell Value Add

“Spring Oaks is extremely pleased with this investment outcome as it positions us for significant growth as we build the premier debt buyer in the industry. Our long-standing partnership with Chartwell has been instrumental in the early development of the Company, and we are grateful for their leadership of our capital raising process. We look forward to many years of continued partnership with their team."

— Marcelo Aita, Executive Chairman, Spring Oaks Capital, LLC

“This is a significant milestone for Spring Oaks as we continue to build our leading portfolio acquisition platform and deepen our relationships with high quality financial institutions seeking a well-capitalized, technology-enabled partner to transition customer relationships. The Ares credit facility, along with our structured capital investor, positions us to be the buyer of choice for sellers seeking a long-term partner, ranging from leading-edge financial technology lenders to global banking institutions."

— Tim Stapleford, President & CEO, Spring Oaks Capital, LLC

About Spring Oaks Capital

Spring Oaks Capital is a national financial technology company, focused on the acquisition of non-performing credit portfolios. The Company subscribes to an employee and consumer-centric operating philosophy that creates high-value jobs, a significant performance lift and highest standards of compliance. Spring Oaks’ business strategy is rooted in innovative data-driven technology to maximize collection results and a contact platform that offers multi-channel options to meet each consumer’s communication preference. Spring Oaks has the management vision and experience to nurture a culture and DNA that is unique in the space. To learn more about Spring Oaks, please visit www.springoakscapital.com.

"The Spring Oaks team possesses unmatched experience and we are excited to be a trusted advisor to the Company. With a fulsome understanding of the Company’s objectives and a review of the capital alternatives available to support the Company’s initial growth, the preferred capital structure exceeded the initial investment expectations, with an ability to facilitate significant future investment over time. The selected institutional private investor also provides complimentary benefits to Spring Oaks’ technology strategy. We are excited to support Spring Oaks’ continued growth. Further, Spring Oaks is well-positioned for sustainable growth through its partnership with Ares, one of the world’s premier institutional credit platforms. We are incredibly excited to witness the Spring Oaks growth story over the next several years, and continue to build on our partnership with Marcelo Aita, Tim Stapleford, and the entire Spring Oaks team."

— Will Bloom, Managing Director & Head of Capital Markets, Chartwell Financial Advisory

About Chartwell Financial Advisory

Chartwell provides comprehensive financial advisory solutions and investment banking services to the middle market. With substantial corporate finance and capital markets expertise, the Chartwell team works with clients and their advisors to deliver independent, solutions-based advisory services that are unbiased to outcome, free from conflicts, and focused on optimizing client objectives. For additional information on this transaction, please contact Will Bloom, Managing Director and Head of Chartwell’s Capital Markets team. To learn more about Chartwell’s overall corporate finance capabilities, please contact Greg Fresh, Managing Director and Head of Chartwell's Corporate Finance group.