Shakeup at CAN Capital – CEO and 2 other Execs Put on Leave of Absence
Update 11/30 7:30 pm: CAN says they are still open for business and still providing access to capital for current customers and renewal business. They are not actively seeking new business at this time, but will evaluate it as it comes in.
CAN Capital has confirmed that CEO Dan DeMeo has gone on a leave of absence. The company’s chief financial officer Aman Verjee and chief risk officer Kenneth Gang have also reportedly stepped down. Parris Sanz, the company’s Chief Legal Officer, has been made acting head of the company, while Ritesh Gupta has been promoted to COO.
A statement from CAN Capital is below:
“As the board and our leadership team conducted our business reviews and looked at how we can best position the firm for future growth, we self-identified that some assets were not performing as expected and that there was a need for process improvements in collections. It became clear that our business has grown and evolved faster than some of our internal processes. As we work to improve these processes, the Board has named twelve-year CAN Capital veteran and senior executive, Parris Sanz acting head of the company and promoted Ritesh Gupta to COO, while Dan DeMeo, CEO, and two other members of his team are on a leave of absence. Over the past 18 years CAN Capital has consistently made decisions to position ourselves for growth and leadership in the industry and we look forward to helping small businesses succeed for many years to come.”
Some of CAN Capital’s referral partners have reported to us that the funding of new deals has been put on hold until January 2017. This could not be confirmed, however. (Update: This was later confirmed)
More than just an industry leader, CAN was founded in 1998 and is widely regarded as the first merchant cash advance company. A year ago, deBanked featured Dan DeMeo and CAN in a story to mark their success. As of April this year, they had funded more than $6 billion since inception. In August, they secured a coveted partnership with Entrepreneur Magazine.
Having secured a $650 million credit facility last year led by Wells Fargo, they are the second largest player in the alternative business finance industry behind OnDeck.
Sanz joined the company in 2004 with more than 12 years of experience as a corporate, securities, and transactional attorney. Before joining CAN Capital, he was a senior executive and General Counsel of a specialty pharmaceutical company, the successful sale of which he led in 2003. Prior to that, Sanz was an attorney in private practice at the law firms of Latham & Watkins in Los Angeles and Paul, Hastings, Janofsky & Walker in San Francisco, where he handled a wide variety of M&A transactions, securities offerings including IPOs, and other corporate transactions, and acted as outside general counsel to a number of technology start-ups.
Sanz received his J.D. from Harvard Law School in 1993 and a Bachelor of Arts degree from U.C. Berkeley, High Honors and Phi Beta Kappa, in 1990. Sanz is admitted to practice in California and Washington, D.C., is a registered In-House Counsel in New York, and is also admitted to practice before the United States Court of Appeals for the Federal Circuit.Last modified: December 18, 2016
Sean Murray is the President and Chief Editor of deBanked and the founder of the Broker Fair Conference. Connect with me on LinkedIn or follow me on twitter. You can view all future deBanked events here.