Värde Partners acquires majority stake in Canaccede Financial Group Ltd.March 3, 2015
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.