Blackstone to sell long-held Exeter Finance to Warburg Pincus-led investor group

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Buyout giant Blackstone has finally agreed to exit its long-held portfolio business Exeter Finance to an investor group led by fellow private equity major Warburg Pincus.

Blackstone bought into the business back in 2011, making a $277m investment through its $18bn BCP VI fund.

It reportedly hired investment banks in 2018 to plan a potential sale or IPO.

Exeter, which was founded in 2006, provides auto debt to consumers with imperfect credit history.

The company has a managed loan portfolio of more than $7bn, and underwrites, purchases, services and securitizes retail installment contracts from more than 11,000 auto dealers and 475,000 customers in the US.

Warburg is a long-time investor in the auto industry, with previous investments including Santander Consumer USA, China Auto Rental, Au Financiers, Uxin, defi SOLUTIONS, Cango and Car Trade.

Dan Zilberman, managing director and head of special situations at Warburg, said, “Exeter Finance is a pioneer in offering innovative financial solutions at scale across the credit spectrum.

“We have over a decade-long close and successful working relationship with this best-in-class management team and are looking forward to partnering with them again in Exeter Finance.”

The transaction is expected to close by the end of 2021.

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