Auto Finance
02 / M&A INVESTMENT
CFI
Acquisition of a 40-year-old subprime auto lender
EQUITY
An established auto lender with a seasoned loan portfolio, a proven origination engine, and seller reinvestment.
TOTAL CAPITAL
$7M
Full acquisition raise
RAISED TO DATE
$3.5M
of $7M, as presented in the trifold
BASELINE RETURN
10X in 5 yrs
14% APY · 40+ years of solvent operations
MINIMUM
$1M
LP equity minimum
THE INVESTMENT
Investment overview
The company operates as a solvent, rapidly scaling auto lender with a seasoned loan portfolio and proven origination engine. Sparton Capital and FlarePoint serve as Managing GP.
The seller/original owner funded the $500K pre-seed and will reinvest $1M of the purchase proceeds into the company to extend its new-loan runway, demonstrating alignment and confidence in the acquisition. With an existing $3M pending investor, the acquisition raise is approximately 50% subscribed upon fund formation.
STRUCTURE & TERMS
Equity participation
Participation in 100% first-year bonus depreciation, as presented in the trifold.
Managing GP
Sparton Capital and FlarePoint
Seller alignment
$500K pre-seed funded; $1M of purchase proceeds to be reinvested in the company.
RISK & MITIGATION
The structure behind the investment
Risk factors and mitigation measures presented in the trifold interior.
Borrower default
Less than 6% average annual default rate across four decades of operation, with 19+ committed dealerships referring business.
Growing dealership network
Supported by referral commitments from 19+ local dealerships.
Downside protection
Asset-backed by $600K+ in commercial real estate and a $4M existing loan portfolio. The trifold also describes tax credits offering a 100% investment write-off.
Seller invested
The owner demonstrated confidence by investing $500K in seed capital.
FLAREPOINT · CONFIDENTIAL
Illustrative figures. Offered only to qualified investors under a private placement memorandum.
Investment figures and terms shown here are from the trifold interior.
English