OpenRoad Lending announces investment from Clarion Capital
FORT WORTH, Texas, September 13, 2021 (GLOBE NEWSWIRE) – OpenRoad Lending and Clarion Capital Partners announced today that Clarion has completed a strategic investment in OpenRoad, the growing direct-to-consumer auto finance company. Chris Goodman, CEO and co-founder of OpenRoad, will retain a significant stake and continue in his role as CEO. Terms of the transaction were not disclosed.
Founded in 2009 by the same executives who started RoadLoans, OpenRoad partners with banks, credit unions and institutional investors to enable consumers to refinance their existing car loans, reduce interest rates and earn significant monthly savings. In addition, OpenRoad offers value-added vehicle protection products such as GAP, vehicle maintenance contracts and paintless dent repair. The company uses the best sales and fulfillment processes, strategic marketing and a proprietary software platform to provide its lending partners with high quality, high performing direct loans that meet each lender’s underwriting criteria.
OpenRoad is currently focusing all of its efforts on automatic refinancing. Through its partnership with Clarion, OpenRoad plans to capitalize on its market position and explore other lines of business, such as car loans, lease buyouts, insurance automotive and other consumer verticals. OpenRoad will also leverage this investment to expand its marketing channels and grow both organically and through acquisition.
“Over the past 12 years, we’ve built a formidable operation known for saving customers money and providing a convenient, modern online experience,” said Goodman. “We expect the demand for auto refinancing to continue to rise as smart consumers look for ways to cut back on their spending. This, combined with the acceleration of digital lending adoption, will drive significant growth for OpenRoad. We are delighted to partner with Clarion and to benefit from their extraordinary expertise, resources and network to grow our business, while providing the best financing experience in the market. “
Matthew Feldman, Managing Director of Clarion, said: “OpenRoad’s exceptional customer value proposition, proven operational base, and commitment to meeting the needs of its lending partners are what attracted us to the business and this. which offers a real opportunity for expansion. We are delighted to partner with Chris and the management team to improve their offering within the Core Refinance Product and beyond. Our two teams share a commitment to excellence, integrity and a collaborative culture. We believe we have a great formula for success. “
In connection with the transaction, Clarion received legal advice from Akerman LLP and Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, PC. Funding for the transaction was provided by funds managed by Madison Capital Funding and PennantPark Investment Advisers, LLC. Colonnade Capital Partners was the exclusive financial advisor to OpenRoad. Munsch Hardt Kopf & Harr, PC acted as legal counsel for OpenRoad.
About OpenRoad Lending
OpenRoad Lending is a direct-to-consumer online auto finance company focused primarily on refinancing. OpenRoad helps consumers with all types of credit in 44 states and remains one of the nation’s largest direct lenders for auto loans.
OpenRoad was recently recognized by Inc. Magazine as the 37th fastest growing privately held company in America. They were also named “Best Place to Work” by the Dallas Business Journal and have won the National Award for “Best and Brighter Workplaces” four times.
OpenRoad’s online application and approval process allows consumers to apply for financing and complete the loan, all from the comfort and privacy of their own homes, through www.OpenRoadLending.com.
Since its inception in 2009, OpenRoad has generated over $ 3 billion in auto loan receivables. The company is headquartered in Fort Worth, Texas.
About Clarion Capital Partners
Clarion Capital Partners is a New York-based private equity firm focused on acquiring stakes in lower-middle market growth companies. Clarion’s industry focus includes financial services, business and healthcare services, media, entertainment and technology, as well as consumer and retail. Additional information on Clarion is available at www.Clarion-Capital.com.
The Satterfield LLC Agency
Image 1: Chris Goodman, CEO of OpenRoad Lending
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Chris Goodman, CEO of OpenRoad Lending