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December 2011

Honor Finance

The Investment

CIVC Partners has teamed with management and existing shareholders to acquire Honor Finance, a specialty finance company that originates, finances, and services automobile finance contracts for non-prime consumers. As part of the transaction, all existing shareholders (including five members of the Honor Finance management team) made investments in the Company alongside CIVC, demonstrating their long-term commitment to Honor Finance’s growth prospects and superior business model. CIVC provided the majority of the equity capital required, while Wells Fargo Preferred Capital, Inc. also provided Honor with a new line of credit.

The Company

Honor Finance is a specialty finance company that originates, finances and services automobile finance contracts for non-prime consumers. Honor purchases contracts from carefully screened automobile dealers with consumers who have limited access to traditional sources of credit. The Company maintains loss rates well below industry averages through rigorous dealer screening, a customized and hands-on underwriting process, and a company-wide emphasis on collections. The Company is headquartered in Evanston, Illinois and maintains offices in Las Vegas, Nevada and Cleveland, Ohio.

Value-Add Approach

The investment in Honor Finance represents another example of CIVC’s investment strategy of partnering with experienced management teams in high-growth financial services industries. The Honor Finance management team is led by Jim Collins, who founded the Company in 2000, and a management team with over ten years of experience working alongside each other refining the Company’s processes that generate superior portfolio performance and loss rates. CIVC’s equity investment will support an immediate and ongoing expansion of Honor’s origination volume and dealer network within the Company’s core, non-prime automobile market. CIVC’s extensive experience with automobile finance companies (including current CIVC portfolio companies GWC Warranty Corporation and Innovative Aftermarket Systems) was a strong selling point for the owners and will help the Company capitalize on the exceptional growth opportunities expected in the non-prime automobile finance industry. CIVC will provide strategic guidance to management and has committed additional growth capital to support the continued expansion of the Company’s operations and loan portfolio.

If you have an opportunity that might be an add-on acquisition candidate for Honor Finance or might fit with our financial services focus, please contact Dan Helle or Chris McLaughlin.

About CIVC Partners

CIVC Partners, a leading Chicago-based private equity firm with over 40 years of private equity experience, currently manages over $1.3 billion of capital. Honor Finance is the third platform investment in CIVC Partners Fund IV, which closed in 2010. In December 2009, CIVC acquired Pipeline Industries, a provider of lateral sewer line repair and replacement services. In June 2010, CIVC acquired KS Energy Services, a leading provider of outsourced maintenance, repair and installation services for blue-chip natural gas and electric utilities.

CIVC provides growth and buyout capital to middle-market companies and executives with a focus on business services, financial services, and marketing and information services. More information on CIVC Partners and its portfolio companies can be found at www.civc.com.

 
 
CIVC PARTNERS: 191 N. Wacker Drive, Suite 1100, Chicago, IL 60606 | © 2017 CIVC Partners. All Rights Reserved.|CIVC PARTNERS: 191 N. Wacker Drive, Suite 1100, Chicago, IL 60606 | © 2016 CIVC Partners. All Rights Reserved.