News
AmeriCap Credit, LLC Announces $80.0 Million Equity Capital Commitment from Metalmark Capital LLC
Oak Brook, IL and New York, NY - April 14, 2006 - AmeriCap Credit, LLC, a national commercial finance company providing financing products and solutions to the small-ticket commercial vehicle and construction & industrial markets, today announced the execution of a definitive agreement under which investment funds managed by Metalmark Capital LLC will provide up to $80.0 million in equity capital to support AmeriCap Credit's continued growth. Concurrently, AmeriCap Credit will change its name to MeriCap Credit Corporation.
The capital provided by Metalmark will enable MeriCap Credit to pursue its mission of being a best-in-class, vendor-centric, full service commercial finance company in a sector that has undergone significant change due to consolidation.
Craig Weinewuth, President and Chief Executive Officer of MeriCap Credit, said, "This investment brings significant value to our organization. It represents an endorsement of our business model and industry position, as well as recognition of the attractive market opportunity we have identified. Metalmark is a leading private equity firm with an outstanding track record of supporting management teams to build companies that create enduring value. Metalmark shares our vision for MeriCap Credit and we look forward to beginning the next phase of our growth and development with Metalmark as our partner."
Mr. Weinewuth continued, "This transaction would not have been possible without the hard work of all our employees and the support of our vendors. They should be assured that we now have even greater resources in place to expand our business and are fully committed to maintaining the personal relationships we have established with our customers, which we believe are fundamental to our continued success. Our current management team, which has produced outstanding results in the commercial finance industry over the past two decades, will continue to lead the company through this next stage of growth."
According to James Freund, MeriCap Credit's Executive Vice President of Sales and Marketing, "MeriCap Credit targets the small-ticket segment of the commercial vehicle and construction & industrial equipment markets - markets in which we have longstanding relationships with manufacturers, dealers and distributors. Our platform is based on service excellence from the professionals we hire, in the products we offer and in the customer relationships we manage."
Howard Hoffen, Chairman and Chief Executive Officer of Metalmark, said, "We are pleased to be partnering with MeriCap Credit's proven management team and strongly support their plans to develop a world-class, small-ticket equipment finance company in their target segments. We believe that the company is well positioned to grow, while maintaining the highest level of quality in the product and service it delivers to its customers."
Messrs Weinewuth and Freund are joined by the Company's other co-founders Joel Cappon, Chief Financial Officer, and David Pederson, Chief Information Officer. This team worked together at American Express where they steered the direction and growth of American Express's commercial finance business focused on the commercial vehicle and construction & industrial markets.
About Metalmark Capital
Metalmark Capital is a private equity investment firm managing in excess of $3 billion of assets whose principals have a long and successful track record of investing in a wide range of industries, including its focus sectors of financial services, industrials, healthcare, energy and other natural resources. Founded by former Managing Directors of Morgan Stanley's flagship private equity investment funds, Morgan Stanley Capital Partners, Metalmark Capital manages the Morgan Stanley Capital Partners private equity investment funds on a subadvisory basis and the Metalmark Capital private equity investment funds.
