Värde Partners, KKR and Deutsche Bank Consortium purchase GE Capital’s Consumer Finance Business in Australia and New Zealand

Värde Partners (“Värde”), a global alternative investment firm, KKR, a leading global investment firm, and Deutsche Bank have signed an agreement for the purchase of GE Capital’s Australia and New Zealand Consumer Lending Business (“the Company”) at an enterprise value of A$ 8.2 billion.

The Company is a leading financial services provider offering a range of services and products including personal loans, credit cards and interest free retail finance. It has more than 3 million customers and is a long-standing partner to many of the major retailers in Australia & New Zealand. All of these products and services will remain under the Company’s new ownership.

Commenting on the transaction, GE Capital Australia & New Zealand Chief Executive Officer Duncan Berry said: “We are delighted to have signed this agreement with a well-respected consortium of businesses. Consumer finance has been a great business for GE and is well positioned for further growth.”

Duncan Berry added, “We remain committed to our growth strategy for GE Capital commercial finance in the region and will continue to build our mid-market lending portfolio and leasing businesses here.”

“GE has a strong platform for growth in our industrial businesses in Australia & New Zealand,” said Geoff Culbert, President and CEO, GE Australia & New Zealand. “This transaction allows us to focus on our strategy to be the world’s premier infrastructure technology company with a specialty commercial financial services business. We will continue to work with our customers in key industries including oil and gas, energy, healthcare, aviation and mining.”

Managing Director of GE Capital’s consumer business, Rachel Cobb, said: “This is an exciting opportunity for us to grow our consumer finance business further and we will continue to provide best-in-class service and solutions for our customers and partners.”

Commenting on the agreement, Joseph Y. Bae, Managing Partner for KKR Asia, said: “KKR is honored to be an owner of such a world-class franchise. We will leverage KKR’s global and regional expertise and platform to create an exciting future for this business.”

“GE Capital is one the most respected providers of consumer finance in Australasia. They are led by a strong management team with an outstanding track record of partnering with leading retailers. We are delighted to have the opportunity to partner with Värde Partners and Deutsche Bank to support both existing and new customers and product growth in the years to come,” said Ed Bostock, Director, KKR Australia.

“Värde Partners believes this partnership will provide a platform for growth in the dynamic consumer finance market in Australia and New Zealand. It is a natural extension of our deep expertise in specialty consumer finance and a great fit for us” said George Hicks, a founding partner and Co-CEO of Värde Partners.

“We are delighted to be part of one of the largest private equity transactions ever in Australia and New Zealand with our world-class partners, KKR and Deutsche Bank. This investment demonstrates Värde’s continued commitment to our Asia-Pacific business, and we look forward to working with the management team to grow the business and strengthen its retail partnerships,” said Ali Haroon, Värde Partners’ lead partner in the Asia Pacific Region.

Deutsche Bank Australia and New Zealand Chief Executive James McMurdo said: “Deutsche Bank is delighted to be partnering with KKR and Värde in the acquisition of this high quality, market-leading business in Australia and New Zealand.”

Advisers to GE are Credit Suisse and Morgan Stanley.

Advisers to the acquiring consortium are Bank of America Merrill Lynch, Moelis & Company and Citi.

The transaction is subject to customary regulatory approvals. Further terms of the transaction are not being disclosed.

About KKR
KKR is a leading global investment firm that manages investments across multiple asset classes including private equity, energy, infrastructure, real estate, credit and hedge funds. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world‐class people, and driving growth and value creation at the asset level. KKR invests its own capital alongside its partners’ capital and brings opportunities to others through its capital markets business. References to KKR’s investments may include the activities of its sponsored funds. For additional information about KKR & Co. L.P. (NYSE:KKR), please visit KKR’s website at www.kkr.com.

About Värde Partners
Värde Partners is a $10 billion global alternative investment firm that employs a credit-oriented, value-based approach to investing across a broad array of geographies, segments and asset types, including real estate, corporate credit, residential mortgages, specialty finance, transportation and infrastructure. The Firm provides the highest level of service to a select group of sophisticated global investors including foundations and endowments, pension plans, insurance companies, other institutional investors and private clients. Founded in 1993, Värde employs 200 people with offices in Minneapolis, London and Singapore.

About Deutsche Bank
Deutsche Bank is a leading client-centric global universal bank serving 28 million clients worldwide. Deutsche Bank provides commercial and investment banking, retail banking, transaction banking and asset and wealth management products and services to corporations, governments, institutional investors, small and medium-sized businesses, and private individuals. Deutsche Bank is Germany’s leading bank, with a strong position in Europe and a significant presence in the Americas and Asia Pacific.

Värde Partners acquires majority stake in Canaccede Financial Group Ltd.

MINNEAPOLIS, MN AND TORONTO, ONTARIO – Värde Partners (“Värde”) and Canaccede Financial Group Ltd. (“Canaccede”) announced today that Värde has entered into a purchase agreement to acquire a 51% majority equity stake in Canaccede. As part of the transaction, Värde has also committed up to an additional C$275 million of financing to grow Affirm Financial Services, Inc., Canaccede’s non-prime consumer lending business in Canada.

Canaccede provides alternative financial services to Canadians, offering unsecured credit cards and personal installment loans and purchasing performing, non-performing or insolvency/bankruptcy consumer loan and credit card portfolios from financial institutions. To date, Canaccede has strategically invested over C$100mm to acquire consumer receivables and is one of the largest consumer finance investment firms in the Canadian market.

“Our investment will help Canaccede expand its innovative consumer finance offerings and enhance their ability to deliver them to the consumer,” said Chris Giles, Senior Managing Director of Värde. “Andy Szemenyei, Scott Coffin and the entire management team at Canaccede have proven to be excellent business partners and we are excited to be investing in Canaccede. The team’s experience in consumer finance, combined with the opportunity in the Canadian market, positions Canaccede for future success.”

Andy Szemenyei, Chief Executive Officer of Canaccede stated, “We are excited about partnering with Värde and cooperatively delivering competitive products and high value service to Canadian consumers.

Scott Coffin, President of Canaccede said, “The consumer finance market has changed significantly in recent years, and the near-prime and non-prime consumer is dramatically under-served. Affirm Financial is well positioned to service this need with our mix of innovative consumer loan and credit card solutions. Fully capitalizing on this opportunity requires the right financial partner, and we are very pleased to extend our twelve year partnership with Värde.”

GMP Securities L.P., Fredrikson & Byron, P.A. and Stikeman Elliott LLP represented Värde, and Grant Thornton LLP and SMG Law Firm represented Canaccede.

Värde and TCFC select Replay Resorts as master developer for Canyons

MINNEAPOLIS, MN AND PARK CITY, UT – Värde Partners (“Värde”) and Replay Resorts (“Replay”) announced today that Replay has been selected to act as the master developer for its substantial land holdings in the Canyons Resort area. Värde is the managing member of TCFC Finance Co LLC (“TCFC”), which owns much of the land comprising the Canyons Ski Resort.

The selection of Replay as master developer is an important step in TCFC’s strategy to assemble a team of mountain resort industry leaders to plan and position the development land for the future. TCFC’s selection of Replay follows its long-term lease agreement with Vail Resorts in May 2013 for the operation of Canyons Resort. Replay intends to work collaboratively with TCFC, Vail, and local stakeholders to ensure the real estate vision and master plan is cohesive with Vail’s operating plans for Canyons and enhances the overall guest experience at the resort.

“Replay Resorts brings a team to Canyons that is arguably the most experienced in the mountain resort development industry,” said Tony Iannazzo, Managing Director of Värde. “Through the selection process it became clear that the Replay team understands the symbiotic relationship between mountain resort operations and real estate development.”

Brian Cejka, Chief Operating Officer of TCFC, said, “the Replay team’s experience at ski resorts such as Whistler Blackcomb and others gives us confidence that Replay will be able to work closely with Vail and all stakeholders to develop a real estate vision and master plan that enriches the guest experience and brings together all that’s great about Canyons.”

Replay also announced today that Gary Raymond, the former CEO of Intrawest Corporation’s development group, and Connie Wynne, former Regional Vice President of Intrawest Placemaking, have joined Replay and will lead the master developer role at Canyons for Replay. Combined, they have overseen the acquisition, master planning, and development of over 25 resorts in the United States, Mexico, Canada, Europe, and New Zealand and have been responsible for developing more than 10,000 condo hotel units, 4,000 resort condominiums, and 1 million square feet of resort commercial space.

“Over our careers we have spent a tremendous amount of time in the Utah market analyzing various mountain development opportunities,” said Gary Raymond, Managing Director of Replay Resorts. “We believe the Park City area to be the best mountain resort opportunity in the world and Vail’s recent announcement regarding the connection of Canyons to Park City Mountain Resort makes this the most exciting place to be in the ski industry. We look forward to working with TCFC and all stakeholders on developing the vision and master plan for the real estate at Canyons.”

“We couldn’t be more pleased to have this opportunity,” said Michael Coyle, CEO of Replay Resorts. “This role brings us back to our roots and leverages our team’s history and expertise in developing some of the most iconic destination mountain resorts in the U.S., Canada and Europe. We believe this area is evolving to be the most sought after ski destination in North America and with easy proximity to an international airport, this is where the world will come to play.”

Replay will assume its role immediately and will report and act as an advisor to TCFC’s management team and Executive Committee.

Praxis Finance LLC and Värde Partners announce $100 million auto finance partnership

GRAPEVINE, TEXAS – Praxis Finance LLC (Praxis) today announced the closing of an investment partnership with affiliates of global alternative investment management firm Värde Partners (Värde). Värde has committed up to $100 million of capital to facilitate the purchase of auto finance receivables by the joint venture entity.

Praxis was founded by auto finance veterans Daniel Parry and Steve Moses. Parry most recently served as Co-Founder and Chief Credit Officer of Exeter Finance from 2006 to 2014, a period where Exeter grew from a startup to a $2.5 billion portfolio. Prior to Exeter, Parry served as SVP at AmeriCredit. Steve Moses, formerly with Associates First Capital and Bank of America, as well as Chief Financial Officer for Transplace and Taylor Logistics, served as Exeter’s Chief Financial Officer from 2008 through 2013 and led the development of Exeter’s $2 billion asset-backed bond program.

Praxis was founded in 2014 with the purpose of serving dealers and consumers across the United States, with a specific focus on the non-prime market. Based in Grapevine, Texas, Praxis will initially concentrate on acquiring portfolios in the Gulf Coast states, but ultimately intends to work with dealers and lenders across the United States.

Steve Moses, President of Praxis, stated, “We are excited about the opportunity to partner with Värde, as Praxis is uniquely positioned to bring both competitive pricing and high service levels to the market.”

Daniel Parry, Chief Executive Officer of Praxis, said, “The auto finance market has changed significantly in the last few years. Having a good business model is no longer enough. Successful lenders must also be viewed as best in class operators by the capital markets and regulators. Accomplishing this takes the right financial partner, which is why we are very pleased to have the opportunity to work with Värde.”

“This transaction is consistent with our strategy of investing in specialty-finance companies with the potential for strong growth,” said Chris Giles, Senior Managing Director of Värde. “Praxis has extensive experience in the auto finance market, and we look forward to working with their team to successfully invest in the non-prime auto finance space.”

Värde was represented by Kirkland & Ellis LLP. Praxis was represented by Katten Muchin Rosenman LLP and received strategic consulting from Chris Hawke and Steve Gertz of Trinity Resource Partners, LLC.

Värde Partners Announce New Management Structure and Geographic Expansion

MINNEAPOLIS – Värde Partners, the $10 billion global alternative asset firm, today announced senior management changes and the opening of new offices in New York, Tokyo and Sydney as part of a strategic plan to build out its global investing platform across a range of asset classes and liquidity profiles.

Co-founder Marcia L. Page, currently co-CEO/CIO, will become Chairman, and George G. Hicks will remain as Värde Partners’ sole CEO/CIO, effective January 1, 2016. Bradley P. Bauer will remain President.

“Founded on the premise of unlocking incremental value from complex situations, Värde Partners has grown over the last 20 years to become a diverse and global investment adviser with $10 billion in assets under management and more than 200 people in primary offices in Minneapolis, London and Singapore,” said Marcia Page. “The changes we are announcing today are part of a thoughtful and extensive strategic review to support the strength of the firm well into the 21st century.”

Co-CEO George Hicks said, “Building on our foundation of loyal long-term clients and new investors, we are strategically expanding to enhance our ability to pursue global investment opportunities — regardless of where those opportunities reside. In addition to our existing offices in Minneapolis, London, Singapore, Milan, Madrid, Luxembourg, Dublin and Barcelona, we will now have new physical locations in New York, Tokyo and Sydney.”

As Chairman, Ms. Page will have oversight of the firm, retain her membership on the Investment Committee, and be involved in a number of strategic initiatives. Beyond Värde, Ms. Page also will dedicate time to various efforts, including those focused on women in the investment industry.

Mr. Hicks concluded, “As a co-founder of Värde Partners, Marcia is a pioneer in the alternative investment management industry and an inspiration to women who work in — or are looking to enter – our field. We are all delighted she remains Executive Chair as we look towards a third decade of seeking investment opportunities and performance for our investors.”

About Värde Partners:
Värde Partners is an approximately $10 billion global alternative investment firm that employs a credit-oriented, value-based approach to investing across a broad array of geographies, segments and asset types, including real estate, corporate credit, residential mortgages, specialty finance, transportation and infrastructure. The Firm provides the highest level of service to a select group of sophisticated global investors including foundations and endowments, pension plans, insurance companies, other institutional investors and private clients. Founded in 1993, Värde employs over 200 people with offices in Minneapolis, London and Singapore.

GE Consumer Finance business becomes Latitude Financial Services

MELBOURNE – Värde Partners, Deutsche Bank and KKR have completed the acquisition of GE Capital’s Australian and New Zealand consumer finance business, now called Latitude Financial Services.

Latitude’s CEO Sean Morrissey said, “Latitude Financial Services is a world-class financial services provider with more than 2.5 million customers and long-standing partnerships with major retailers in Australia and New Zealand.”

“While our customers and partners will see no immediate change to the best-in-class service and solutions we currently deliver, we are excited about the opportunities ahead. Värde Partners, Deutsche Bank and KKR bring a wealth of global and regional expertise to the business and together we are committed to building on and investing further in our range of innovative consumer finance products and solutions. The entire Latitude team looks forward to their support as we grow the business,” Mr. Morrissey added.

The acquisition is one of the largest private equity transactions ever in Australia and New Zealand and demonstrates the strength of the consumer finance market in the region.

About Latitude Financial Services:
Latitude Financial Services is a leading consumer finance business in Australia and New Zealand, offering 2.5 million customers a broad range of finance products including personal loans, credit cards, insurance and interest-free promotional and retail offers. Across Australia and New Zealand, the Business currently employs more than 2,200 staff and services its customers through a network of retailer partners, brokers, phone and the internet. The company offers a full suite of financing solutions for retail partners, managing credit applications, credit authorisation, billing, remittance and customer service processing. Its products include Gem Visa, GO MasterCard, 28 Degrees Platinum MasterCard, Myer Card and Myer Visa.