MINNEAPOLIS and TORONTO, March 16,
2022 /PRNewswire/ -- Castlelake L.P. ("Castlelake"),
a global alternative investment manager with 17 years of experience
investing in asset-rich opportunities, and Chesswood Group Limited
(TSX: CHW), a specialty finance company with 40 years of experience
in the commercial equipment finance market, today announced an
agreement for the forward purchase of diversified equipment loan
and lease receivables originated by Chesswood subsidiaries Pawnee
Leasing Corporation and Tandem Finance Inc.
Through the agreement, vehicles managed by Castlelake will
acquire up to $400 million of small
ticket equipment loan and lease receivables. The funds from the
forward flow agreement are expected to enable Chesswood's
subsidiaries to continue growing originations alongside market
demand by providing off-balance sheet funding for loan
originations.
"We are pleased to partner with the management of Chesswood,
Pawnee and Tandem as they continue to expand their well-established
equipment financing footprint with small and medium-sized business
across the U.S.," said Armin
Rothauser, Partner, Lending at Castlelake. "We believe this
agreement enables us to help meet the need for capital in a growing
market, support the continued growth of an experienced market
participant and provide interesting exposure to our investors."
"The industry consolidation that has taken place over the past
decade in U.S. small and mid-size equipment finance has created a
unique growth opportunity for both Pawnee Leasing and Tandem
Finance," said Jeff Fields, Chief
Executive Officer of Chesswood Capital Management. "Castlelake's
expertise in equipment finance and focus on asset-rich,
cash-flowing opportunities make them an ideal partner for the
Chesswood Group of Companies."
"We are excited to announce this transaction as we continue to
grow our equipment finance volumes in the
United States. This agreement expands on our strategic
initiatives which seek to diversify revenue and earnings streams
for Chesswood Group," said Ryan Marr
President & CEO of Chesswood Group.
Castlelake's specialty finance experience spans more than
$3 billion of investments across more
than 3,500 commercial and industrial loans and over 5 million
consumer receivable accounts. The Chesswood team has originated and
serviced equipment loan and lease contracts across the credit
spectrum through multiple credit cycles, including the global
financial crisis and the COVID-19 pandemic.
About Castlelake, L.P.
Castlelake, L.P. is a global alternative investment manager
focused on investments in real assets, specialty finance and
aviation. Founded in 2005, Castlelake manages approximately
$21 billion of assets. The Castlelake
team comprises more than 200 experienced professionals, including
89 investment professionals, across six offices in North America, Europe and Asia. For more information, please visit
www.castlelake.com.
About Chesswood Group Limited
Through three wholly-owned subsidiaries in the United States and five subsidiaries in
Canada, Chesswood Group Limited is
a North American specialty finance company publicly traded on the
Toronto Stock Exchange. Colorado-based Pawnee Leasing Corporation,
founded in 1982, finances a highly diversified portfolio of
commercial equipment leases and loans through relationships with
over 600 brokers in the United
States. Tandem Finance Inc. provides commercial equipment
financing in the U.S. through the equipment vendor channel.
Based in Toronto, Canada,
Chesswood Group Limited's shares trade on the TSX under the symbol
CHW. For more information, please visit
www.chesswoodgroup.com
Contact
Prosek Partners for Castlelake
Josh Clarkson
jclarkson@prosek.com
+1 212 279 3115
Chesswood Group Limited
Ryan Marr, Chief Executive
Officer
rmarr@chesswoodgroup.com
+1 416 386 3099
NO STOCK EXCHANGE, SECURITIES COMMISSION OR OTHER REGULATORY
AUTHORITY HAS APPROVED OR DISAPPROVED THE INFORMATION CONTAINED
HEREIN.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/castlelake-and-chesswood-announce-forward-flow-purchase-agreement-for-equipment-loan-and-lease-receivables-301504569.html
SOURCE Castlelake