Levine Leichtman Capital Partners (LLCP) has exited its investment in Consumer Portfolio Services realizing a 27% IRR and a 2.3X multiple of invested capital.
Consumer Portfolio Services (NASDAQ: CPSS) is a specialty finance company that provides indirect automobile financing to individuals with past credit problems, low incomes or limited credit histories. The company purchases retail installment sales contracts primarily from franchised automobile dealerships secured by late model used vehicles and, to a lesser extent, new vehicles. CPSS funds these contract purchases on a long-term basis primarily through the securitization markets and services the contracts over their lives. CPSS maintains a portfolio of more than$1 billion of automobile contracts. CPSS is headquartered in Irvine, CA with four branches in Nevada, Virginia, Florida and Illinois (www.consumerportfolio.com).
Levine Leichtman invested $25 million in CPSS in July 2008 and made a $20 million follow-on investment in December 2010.
“We have thoroughly enjoyed our long term partnership with CPSS and its management team led by Chairman and CEO Charles Bradley, Jr. During the past six years, we have seen CPSS deliver on its significant growth in contracts purchased and managed receivable portfolio. We are very pleased to have been part of the CPSS success story,” said Lauren Leichtman, CEO of LLCP. “We are also pleased to provide a very attractive return to LLCP’s investors through an exit that was facilitated by CPSS’ excellent access to the capital markets.”
Levine Leichtman manages approximately $7 billion of capital through private equity partnerships, distressed debt and leveraged loan funds. The firm is currently making new investments through Levine Leichtman Capital Partners V, LP; Levine Leichtman Capital Partners SBIC Fund, LP; and Levine Leichtman Capital Partners Private Capital Solutions II, LP. The firm is based in Los Angeles with offices in Chicago, Dallas, New York and London (www.llcp.com).
2014 PEPD • Private Equity’s Leading News Magazine • 7-30-14