Financial Services: Alternative Financial Services Provider

Partnering with management through an MBO

Serent sponsored a management buyout of an alternative financial services company in the Southwest. The company provides under-banked consumers with an opportunity to obtain financing and establish credit histories. Prior to Serent's investment, the company experienced rapid growth and sustained profitability as revenues increased by 50% in 2009 to over $30 million. The success of the company is attributable to its targeted customer acquisition model, strong underwriting processes, and a sophisticated management team that had grown a similar business to over $100 million in revenue in the 1990's.

Since completing the transaction, Serent has helped the company continue its growth by expanding into new markets, as a part of a comprehensive geographic expansion strategy. Serent has also supported management as it strengthens its underwriting processes and builds out the company's executive team.

Serent's opportunity to invest came when a majority owner needed to liquidate his stake in the company due to external circumstances. Serent was introduced to the company by a boutique investment banker, who had a relationship with the CEO. Serent retained the banker as its buy-side advisor and worked with the seller's advisor to consummate an investment in an expedited time frame to meet the seller's need. By responding quickly and conducting diligence on an accelerated timeline, Serent was able to successfully back the management team in its acquisition of the business in a process that took place in under sixty days.