Old Hill Partners has provided a $6 million revolving facility to a company focused on lending to small and medium-sized buyers of portfolios of charged-off consumer debt.
The underlying loans are backed by portfolios of charged-off credit card receivables, installment loans, auto deficiencies, student loans, and other, mostly consumer-based, lending products.
“We operate in a segment of the lending market that requires specialized knowledge and that is underserved by large traditional lenders due to regulatory constraints. The firm’s experience in the asset-based lending (ABL) sector and particularly in specialty and consumer finance, allowed us to execute on a transaction that offered a flexible financing solution for this borrower that is not available from traditional banks. We worked very closely with the borrower to craft a tailored transaction, secured by solid collateral, that aligned the interests of all involved,” said, Peter Faigl, senior portfolio manager, at Old Hill.
