Daily News: May 11, 2012

Falfurrias Capital Sells Commercial Credit Group to Lovell Minnick


Commercial Credit Group (CCG), an independent commercial equipment finance company, said it received a majority equity investment from funds affiliated with Lovell Minnick Partners, which purchased a controlling ownership interest of Commercial Credit from Falfurrias Capital Partners. Proceeds from the transaction will be used to support CCG’s growth and provide liquidity to certain institutional shareholders.

CCG co-founder and chief executive officer Dan McDonough commented, “With this investment by Lovell Minnick, we are pleased to add a scalable equity capital partner and a specialist firm, like ours, who embraces our vision for growth. Lovell Minnick has a track record of developing successful, high growth companies, and their exclusive focus on financial services enables them to effectively support the execution of our growth plan.”

Lovell Minnick managing director John Cochran added, “Following the financial crisis, the equipment finance market, like many segments of the credit markets, has undergone significant competitive dislocation, marked by the departure or pull back of many industry players. CCG’s management, with its niche focus and client-centric philosophy, has expertly navigated this environment. We are excited to partner with such an accomplished team.”

“We were able to provide capital to CCG during a time when most investors were shying away from the commercial lending market,” said Marc D. Oken, co-founder and managing partner of Falfurrias Capital Partners. “Our growth capital combined with management’s leadership enabled the company to take advantage of dislocations in the financial market and achieve outstanding growth and financial performance when most competitors were on the defensive.”

The transaction comes just over two years after Falfurrias acquired the Charlotte-based equipment lender in March 2010.

Keefe Bruyette & Woods acted as the exclusive financial advisor to CCG in connection with the transaction. Falfurrias Capital Partners was advised by McGuireWoods.

Commercial Credit Group focuses on purchase money and refinance transactions in the construction, fleet transportation and waste industries.

Falfurrias Capital Partners, founded by former Bank of America chairman and CEO Hugh McColl Jr. and former Bank of America CFO Marc D. Oken, is a private equity investment firm focused on acquiring or investing in a diverse portfolio of middle-market companies operating in the southeastern U.S.