Perella-Backed Subprime Auto Lender Flagship Sells Business Ops
A customer looks over an SUV at a car dealership in Orland Park, Illinois.
Photographer: Daniel Acker/BloombergSubprime auto lending company Flagship Credit Acceptance agreed to sell its business operations and other assets to specialty finance firm InterVest Capital Partners, according to a statement Friday, a deal that comes as headwinds in the industry are raising concerns over the quality of auto loans.
Flagship Credit is held by funds affiliated with Perella Weinberg Partners Capital Management LP that are sub-advised by Innovatus Capital Partners, a firm formed by former Perella executives. They had been looking to solicit interest in the company in a transaction that was estimated to fetch around $400 million about a year ago, people familiar with the matter said earlier.