Wingspire Capital provided a $40 million commitment to XL Funding.
XL Funding provides floorplan loans to auto dealers in more than a dozen markets and will use the funding to refinance a previous bank loan and extend capital to more small and medium-sized dealers in states such as California, Texas and Florida.
Wingspire was attracted to XL Funding’s position as consumers pursue affordable pre-owned automobiles amid the uncertain economy and a desire for “private” transportation during the coronavirus pandemic.
Wingspire also admired XL Funding’s assisting of dealership customers in navigating government programs such as the Paycheck Protection Program and other Small Business Administration loans.
“Wingspire is pleased to support an experienced leadership team with a successful track record of profitably growing portfolios while also following sound financial reporting policies and controls,” John Rosin, president and COO of Wingspire Capital, said.
Wingspire’s financial support will allow XL Funding to deploy more capital to dealers who are seeing strong retail demand as people begin to return to offices, job sites, schools, retailers and other places. XL Funding, which is backed by Huron Capital Partners in Detroit, also benefits from the XLerate Group’s auction footprint.
“This financing will enable our business to expand strategically into new markets in a thoughtful and purposeful way while also letting us remain nimble and responsive to the needs of our existing customers,” Joel Garcia, president of XL Funding, said.
Capstone Headwaters advised XL Funding on the transaction.
Wingspire Capital focuses on the upper tier of the senior secured asset-based lending and ABL stretch market by providing revolving credit lines and term loans ranging from $20 million to $200 million.
