ATLANTA, May 6, 2024
/PRNewswire/ -- Flock Financial, LLC, ("Flock" or the "Company"), a
leading financing partner to middle market receivables management
and consumer finance companies active in the purchase, sale, and
collection of performing and nonperforming receivable assets,
announced today that various investment funds affiliated with
PennantPark Investment Advisers, LLC ("PennantPark") have invested
$25 million in the Company.
Flock's existing lenders have also reaffirmed their commitment to
the business by providing additional borrowing flexibility and
extending maturity.
As part of the transaction, PennantPark retained and added key
leadership personnel to manage the strategic and operational
efforts of Flock. The executive team leading Flock now includes
Damon W. Edmondson as Chief Investment Officer, Greg Paulo as Chief Revenue Officer, and
Jeff Shaver as Chief Financial
Officer. Flock's founder, Michael
Flock, has transitioned to the role of Non-Executive
Chairman.
The partnership with PennantPark aims to fortify the Company's
position as a premier provider of funding to middle market
receivables management and consumer finance firms. With the closing
of the transaction, Flock re-hired Damon
Edmondson to complement the existing leadership team of Mr.
Paulo and Mr. Shaver. Mr. Edmondson's inclusion in the
leadership group will significantly bolster the Company's risk
management protocols and investment process among other
enhancements.
"I am excited to re-join Flock and look forward to continuing
our commitment to innovate and deliver customized solutions to our
current and new clients and delivering on our promises to our
investors," Edmondson said. "Our new partnership with PennantPark
gives us the capacity to grow and provide collaborative solutions
to the receivables management and consumer finance markets. With
debt prices seeing a realignment and increasing consumer debt
becoming available to our clients, we are excited about the
opportunities this affords us."
The recent recapitalization provides Flock with substantial
capital and expanded funding capacity, strategically positioning
the business to bolster both existing partnerships and cultivate
new ones. The timing of the transaction will allow the Company to
capitalize on improving market conditions.
"We are very pleased to partner with Flock and the management
team to support the growth and expansion of the Flock platform,"
said Ryan Raskopf, Partner at PennantPark. He added "We
believe the Company is well positioned to capitalize on an
attractive market environment and has significant opportunities for
growth given its reputation and unparalleled service to its
clients."
"With this injection of growth capital, Flock will be an even
stronger player in the financing of receivables," Paulo said. "I
believe we are well positioned to take advantage of anticipated
trends in demographics, and the changing economy. These changes
include consumer revolving credit at an all-time high of over
$1.5 trillion and delinquencies at
their highest rate in almost 4 years."
"I am energized and truly appreciate the opportunity to work
with the PennantPark team," Jeff
Shaver states, adding, "The financial strength, market
reputation, and industry expertise that is inherent with their
investment provides stability and a greater sense of confidence at
this critical time for the business. The new capital allows the
business to deleverage the balance sheet, increase liquidity and
borrowing capacity, and ultimately allows Flock to pursue our
growth and value creating initiatives."
About Flock Financial, LLC
Headquartered in Atlanta,
Georgia and founded in 2013, Flock is a market-leading
provider of bespoke capital solutions to middle market receivables
management and consumer finance companies that are engaged in the
purchase, sale, and collection of performing and nonperforming
receivables. Flock has built a comprehensive platform that offers
clients a unique partnership with a market-leading underwriting and
structuring, valuation and analytics, and thought leadership firm.
Flock has funded over $768 million in
purchase value representing $31
billion in account balances since inception. Flock's
expertise is valued across the receivables management financing
industry.
For more information visit www.flockfinance.com. For questions,
please email info@flockfinance.com.
About PennantPark Investment Advisers
PennantPark Investment Advisers, LLC ("PennantPark") is a
leading middle market investment platform, which today has more
than $7.2 billion of assets under management. Since its
inception in 2007, PennantPark has provided investors access to
middle market investment offerings by private equity firms and
their portfolio companies as well as other middle-market companies.
PennantPark provides a comprehensive range of creative and flexible
capital solutions. PennantPark is headquartered in Miami and has offices in New York, Chicago, Houston, Los
Angeles, and Amsterdam. For
more information visit www.pennantpark.com.
Media Contact:
Greg
Paulo
Flock Specialty Finance
gpaulo@flockfinance.com
404-242-5707
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SOURCE FLOCK Specialty Finance