Genesis Financial Solutions Raises $25M
BEAVERTON, OR, Leader in providing point of sale financing to customers with imperfect credit, today announced the closing of a $25 million minority equity investment from Endeavour Capital.
Genesis Financial Solutions, a leader in providing point of sale financing to customers with imperfect credit, today announced the closing of a $25 million minority equity investment from Portland, Oregon-based Endeavour Capital to provide capital to fund continuing growth for the Beaverton, Oregon-based company. The Endeavour Capital investment was accompanied by a significant increase in the company's lending facility with Wells Fargo Securities. Terms of the Endeavour investment were not disclosed.
"and while we enjoyed strong success whenever we took on a portfolio of accounts, this was not a reliable source of opportunities. Although Genesis currently serves over 200,000 consumers, identifying a target market with significantly greater potential was a critical priority."
Genesis is experiencing strong demand for its new lending products, and is building capacity to further accelerate growth. "For several years our company focused on acquiring and servicing existing loans," CEO Bruce Weinstein explains, "and while we enjoyed strong success whenever we took on a portfolio of accounts, this was not a reliable source of opportunities. Although Genesis currently serves over 200,000 consumers, identifying a target market with significantly greater potential was a critical priority."
Over two years ago Genesis began analyzing the market for ways to deploy its servicing and risk management capabilities which would foster more reliable growth. Weinstein and his management team identified the point of sale market as fragmented and under-served. "We believed that we could offer a valuable service to consumers and our partners by offering credit to those turned down by prime private label lenders like GE, Citibank and Chase. This is not a new business, but rather one which is served by dozens of small companies," Weinstein points out, "so we looked for ways in which we could distinguish ourselves. We ultimately built a program that emulates large prime lenders' products, service levels and quality, and pricing to the consumer. This did not exist in the market. And our approach seems to be working. We anticipate our programs to be offered in over 2,000 store fronts and clinics by year-end."
Chris Tinio, Genesis' Chief Sales and Marketing Officer, says the company is approaching specific merchant categories carefully. "We know that within each type of merchant or service provider there are unique aspects which are bound to affect consumer acceptance and loan performance. And each industry has its own structure, industry and pricing habits."
To meet demand, Genesis is hiring 50 employees in the second half of 2012, to a total of 200. Recently, it leased additional space adjacent to its headquarters. "We anticipate very rapid growth, and are building the management and financial infrastructure required to keep up with demand we see," says Weinstein. "We think Genesis is in the early stages of a very large opportunity, and we're preparing for exciting times."
About Endeavour Capital: Endeavour Capital, headquartered in Portland, Oregon, was formed in 1991 to provide long-term equity capital to private businesses located in the western United States. Endeavour today manages approximately $1.6 billion in committed capital from offices in Portland, Los Angeles, Seattle and Denver. The Genesis investment was made by Endeavour Capital Fund VI, which closed in September 2011 with $675 million in committed capital.
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