Middlemarch Successfully Secures Majority Equity Investment from Elliott Management for Channel Partners Capital LLC.

New York, NY June 14th, 2018

Middlemarch Securities, the investment banking arm of Middlemarch Partners, LLC (“Middlemarch”) acted as the investment banking advisor to Channel Partners Capital (“Channel”), a leading provider of small business loans. Middlemarch secured a significant equity investment from Funds advised by Elliott Management Corporation (“Elliott”), a private investment firm with approximately $35 billion in assets under management. Concurrent with the growth equity investment, Channel also refinanced its balance sheet with an expandable asset-backed facility led by CIBC Bank USA.

 

Middlemarch advised Channel on its growth strategy, capital needs and executing a complex transaction structure to achieve the goals of multiple stakeholders. Demetris Papademetriou of Middlemarch Partners stated, “After raising over $750 million dollars for a variety of alternative finance companies, we immediately recognized Channel’s strong management, unique customer acquisition strategy and superior performance metrics. Channel’s profile made a compelling investment candidate. With its investment from Elliott and CIBC, Channel is positioned to achieve its near-term goal of $300M in funded working capital loans.” This transaction further solidifies Middlemarch Partners’ role as the advisor of choice in the Alternative Lending sector.

 

Channel, a company providing working capital solutions for small to mid-sized companies through its proprietary network of over 400 equipment leasing partners will use the growth capital to scale its loan originations, operations, and technology platform; enabling more efficient financing for its clients.

 

Brad Peterson, CEO of Channel Partners Capital LCC., stated “This is a major milestone for Channel Partners Capital and we appreciate Middlemarch’s efforts to make it happen. They prepared us to meet many highly qualified investors and guided us through a complex transaction, culminating with finding the right partner to fuel our growth in Elliott Management.”

 

 

About Channel Partners Capital LLC.

Based in Minnetonka, Minn., Channel Partners Capital (“Channel”) is a leading provider of small business loans utilizing customized technology and business processes. Channel delivers loans to small businesses through partnerships with equipment finance companies, helping these companies provide their customers access to capital needed to grow their businesses.

 

Since its founding in 2009, Channel has originated over 7,000 loans generating loan receivables of over $350 million. Channel is one of a limited number of full-service, non-bank, small business lenders successfully filling the gap in small business credit availability.

 

About Elliott Management

Elliott Management Corporation manages two multi-strategy investment funds which combined have approximately $35 billion of assets under management. Its flagship fund, Elliott Associates, L.P., was founded in 1977, making it one of the oldest funds of its kind under continuous management. The Elliott funds’ investors include pension plans, sovereign wealth funds, endowments, foundations, funds-of-funds, high net worth individuals and families, and employees of the firm.

 

About Middlemarch Partners

Middlemarch Partners is a New York, NY based merchant bank that works with companies looking for well-structured and thoughtful solutions to their capital raising, M&A, and strategic partnering needs. Middlemarch is particularly active within the alternative finance, payments, financial technology and business services sectors where companies require sophisticated equity and debt investment solutions. Middlemarch Partners conducts investment banking through Middlemarch Securities, LLC, member FINRA, SIPC.

 

For more information on Middlemarch Partners, LLC please visit www.middlemarchllc.com.

 

Media Contact: Demetris Papademetriou

Phone: 212-913-9660

URL: www.middlemarchllc.com

SOURCE: Middlemarch Partners, LLC

Securities offered through Middlemarch Securities, LLC, Member FINRA, SIPC.

 

Middlemarch Partners Successfully Completes $21.95 Million Growth Equity Raise for Flexshopper

Middlemarch Partners announces its role as the sole merchant banking advisor in the completion of a $21.95 million preferred equity raise for FlexShopper, Inc. (OTCQB Symbol: FPAY), an online provider of lease-to-own (“LTO”) financing and payment solutions for consumers. Middlemarch Capital Partners, Middlemarch Partners’ co-investment arm, invested alongside a $5 billion private equity fund that led the investment round.

The financing will enable FlexShopper to accelerate its growth in originating consumer leases through its LTO e-commerce marketplace and patent pending LTO payment method, which is used by leading retailers across the United States. FlexShopper is able to support LTO transactions online, in stores, and via its smart phone application, the FlexShopper wallet. Through its partnerships with leading retailers of electronics, appliances, furniture, musical instruments, and equipment, FlexShopper offers over 80,000 different items all on a lease-to-own basis. Internet Retailer recently named FlexShopper as the fastest growing consumer electronics e-retailer in the United States for 2015.

Brad Bernstein, CEO, stated, “We are very pleased with this capital raise. Securing the support of our lead investor will assist us in growing our franchise with leading retailers in electronics, appliances, and furniture. The funds will also allow us to reach more American consumers who deserve the opportunity to lease the branded merchandise they love.” He continued, “We are happy to have Middlemarch investing with us again, as they did last year when we raised capital with their assistance. They understand our business and have been fully supportive of our strategy.”

Dean Larson of Middlemarch Partners added, “Earlier this year we launched Middlemarch Capital Partners to offer institutional investors and family offices the opportunity to invest alongside blue-chip lead investors in Middlemarch Partners-sourced investment opportunities.” He continued, “Our investment in FlexShopper includes capital from our Partners as well as several family offices that believe in the capital appreciation potential of FlexShopper. We look forward to sharing other investment opportunities sourced through our merchant banking activities with interested debt and equity investors.”

ABOUT FLEXSHOPPER
FlexShopper, LLC, a wholly owned subsidiary of FlexShopper, Inc. (FPAY) is a financial and technology company that provides brand name durable goods to consumers on a lease-to-own (LTO) basis through its e-commerce marketplace (www.flexshopper.com ) and patent pending LTO payment method. FlexShopper also provides LTO technology platforms to retailers and e-tailers to enter into lease transactions with consumers that want to obtain durable goods but do not have sufficient cash or credit to acquire the products themselves.

ABOUT MIDDLEMARCH PARTNERS
Middlemarch Partners is a merchant bank that works with companies looking for well-structured and thoughtful solutions to their capital raising, M&A, and strategic partnering needs. Middlemarch is particularly active within the specialty finance, payments, and financial technology sectors where companies require sophisticated equity and debt investment solutions. The firm is capable of supporting venture and growth capital transactions ranging from $15 to $250 million in either debt or equity. The firm selectively co-invests in both debt and equity transactions alongside blue-chip lead sponsors and assembles its capital from leading institutional investors and family offices.