CAN Capital resumes lending after putting the brakes on in November of last year.
CAN Capital, a veteran of the alternative finance sector, is once again lending to small businesses. The company paused its lending towards the end of last year amidst concerns over the performance of some assets. A statement by the company suggested that improvements needed to be made to its collections processes. The company stated its intention to resume originations in 2017 at the time.
Former CEO Daniel Demeo was put on a leave of absence alongside the company’s chief financial officer and chief risk officer. Parris Sanz, who has now taken over as CEO of the company, said that Varadero is a “seamless fit” for CAN Capital.
Originations have now been resumed after a recapitalisation by New York-based alternative asset manager Varadero Capital, a seasoned online lending investor that has in the past worked with platforms like Lending Club and LiftForward.
The exact terms of the Varadero deal have not been disclosed. DLA Piper acted as legal counsel to CAN Capital, with Jefferies serving as the financial advisor. Mayer Brown was legal counsel to Varadero Capital.
“We were impressed with the overall value proposition of CAN’s offerings as evidenced by the strength of its long standing relationships, the company’s core team, sound underwriting practices, technology and the strong performance of their credit extension throughout the cycle,” said Fernando Guerrero, managing partner and chief investment officer of Varadero Capital. “We’re confident the company’s focused funding practices will allow it to serve small business customers for many years to come.”
CAN Capital is one of the world's longest-standing alternative lenders, having been founded in 1998. The company has lent over $6.5bn to over 75,000 small businesses to date.