Industry Mergers & Acquisitions

[SCP]

I've always been curious but never been able to find a concrete source for M&A activity in the AltLend space. I suspect if I continue to follow DeBanked I'll definitely hear about them but in the meantime can anyone recall any notable mergers or acquisitions that have taken place over the last few years? I'm trying to see if there's a trend of M&A activity with direct competitors or merely from institutional lenders acquiring an AltLend company then merely "re-branding" to create another arm of operation for them.

Cheers - Ridg

[sean bash]

I've always been curious but never been able to find a concrete source for M&A activity in the AltLend space. I suspect if I continue to follow DeBanked I'll definitely hear about them but in the meantime can anyone recall any notable mergers or acquisitions that have taken place over the last few years? I'm trying to see if there's a trend of M&A activity with direct competitors or merely from institutional lenders acquiring an AltLend company then merely "re-branding" to create another arm of operation for them.

Cheers - Ridg

Here's one for you:

Miami-based Rapid Capital Funding recently acquired Anaheim-based American Finance Solutions. Almost immediately after, North American Bancard acquired Rapid Capital Funding.

North American Bancard now owns at least 3 merchant cash advance companies:

• Capital For Merchants (Troy, MI)
• American Finance Solutions
• Rapid Capital Funding

[Loans]

That's interesting had no idea a processor bought those two companies. What was nabs goal in doing that? Were they not organically growing the mca business through capital for merchants and just decided to purchase companies and their merchants? Also, will nab market to those merchants that ISos may have thought the processing was protected?

[sean bash]

That's interesting had no idea a processor bought those two companies. What was nabs goal in doing that? Were they not organically growing the mca business through capital for merchants and just decided to purchase companies and their merchants? Also, will nab market to those merchants that ISos may have thought the processing was protected?

I actually don't know what their goal was in doing that, other than to maybe own a bigger slice of the industry's pie since it's growing like crazy right now. As for whether or not they will market to those merchants, I don't know. NAB has been pretty good thus far about boundaries in all the years they have served the MCA industry.

[SCP]

Wow, very interesting! I'd assume that NAB would go out of their way to make those acquisitions because they plan to either cross-sell payment processing (or advances dependent on which arm of business) or at least analyze that data in some way. I've heard of Rapid Capital Funding, will have to check out the other two. Thanks for the update! - Ridg

[Chambo]

Wow, very interesting! I'd assume that NAB would go out of their way to make those acquisitions because they plan to either cross-sell payment processing (or advances dependent on which arm of business) or at least analyze that data in some way. I've heard of Rapid Capital Funding, will have to check out the other two. Thanks for the update! - Ridg

I'm sure cross selling is in there somewhere, but probably more based on just getting bigger slice of the pie, now that cash advance has drifted so far off the CC processing radar

[Chambo]

EVO did the same thing....were losing accounts to Cash Advance....so they started Merchant Capital Access

[Benchmark]

EVO did the same thing....were losing accounts to Cash Advance....so they started Merchant Capital Access

Didn't they sell MCA?

[Loans]

Didn't a small PE firm acquire merchant cap access in northeast?

[sean bash]

Didn't a small PE firm acquire merchant cap access in northeast?

Yup, Angelo, Gordon & Co bought them.

[sean bash]

Oh and Angelo Gordon also bought Reliant Funding out in San Diego, CA.

They're building a portfolio of MCA companies too...

[mayi]

woa what! Reliant got bought? when did this happen?

[platformlending]

Is there an official M&A list somewhere?

[sean bash]

There isn't, but we should probably make one.

[Loans]

Based on debanks article amerimerchant was consolidated? Will they still brand as amerimerchant in the us?