Cherry Hill, NJ – February 1, 2013
Pelican Auto Finance, LLC (“Pelican”) announced that it has received an initial equity investment from funds affiliated with private equity firm Flexpoint Ford, LLC (“Flexpoint Ford”) and that Flexpoint Ford has been granted the option to invest up to $50 million in the aggregate in Pelican. As an indirect, deep sub-prime automotive lender, Pelican provides auto financing solutions for both franchise and independent dealers in the Mid-Atlantic region as well as in Texas.
The investment by Flexpoint Ford establishes Pelican as an important auto finance resource for its dealer clients. Pelican provides automotive dealers with a competitive choice to finance deep subprime borrowers, including those with no credit, very low FICO scores, or a previous bankruptcy, repossession or foreclosure.
“The Pelican management team is thrilled to partner with Flexpoint Ford to grow a significant and competitive platform in the underserved deep subprime space,” said Troy Cavallaro, Chief Executive Officer of Pelican. “Our mission is simple — to provide a solution for dealers to sell more cars to consumers that may otherwise be turned down by more traditional financing sources. With Flexpoint Ford’s partnership, Pelican will be able to grow into a recognized leader in the sector.”
Chuck Glew, Senior Principal of Flexpoint Ford, commented, “We are excited to partner with Troy Cavallaro and the entire management team of Pelican. The team’s focus and years of experience in the deep subprime niche position this platform well for future success.”
Michael Tyree, a Vice President of Flexpoint Ford, added, “We believe that Pelican’s financing solutions and overall focus on high quality service will allow the Company to become a trusted partner for both independent and franchise dealers that are looking to capture deep subprime customers. We are enthusiastic about the larger opportunity for Pelican’s continued growth in this market.”
Operating out of San Diego, California and Cherry Hill, New Jersey, Pelican’s senior management team has over 60+ years in the sub-prime automobile finance space. Pelican is a newly-capitalized entity which includes all senior management and employees of a predecessor company, Pelican Resource Group, LLC (“PRG”). Founded in 2009, PRG established a successful track record of providing dealership financing solutions in the deep subprime space. For more information, please visit www.pelicanaf.com.