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.”
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.