Newly established Global Lending Services LLC has acquired Resurgent Auto Finance. The acquisition includes a $38 million loan portfolio as well as a funding and servicing platform. Atlanta-based Global Lending Services also has entered into a partnership with New York-based investment firm BlueMountain Capital Management. Several BlueMountain managed funds and Chairman Douglas Duncan will collectively invest $100 million in capital. BlueMountain will have a majority interest in Global Lending Services.
“By making this acquisition, we now have a platform in place that will enable us to create a scalable subprime auto finance business and execute our plan to establish a national presence in the market,” Duncan said in a statement. “The opportunity to partner with BlueMountain was strategic given the significant amount of capital required in the auto finance business.”
With $100 million in committed capital, Global Lending Services is well positioned to secure additional debt, as needed, to support growth, said Global Lending Services Chief Executive Gary Lorenz in a statement.
“BlueMountain also has a deep understanding of the subprime auto finance sector and an experienced team of professionals that will add significant value to our business."
In a related matter, Global Lending Services secured a senior debt facility with UBS Real Estate Securities Inc. for $75 million. "The UBS facility provides the foundation for our debt program, which will scale as we grow our loan portfolio,” said Mark McCall, Global Lending Services chief financial officer, in a statement. “The UBS team established a facility that meets our specific needs, and we are very excited to partner with them as we build the business.”