(Bloomberg) -- Castlelake is mulling options, including a sale, for consumer-lending platform Concora Credit, according to people with knowledge of the matter.
The firm is working with financial advisers on a potential transaction that could value Concora at about $1 billion, said the people, who asked not to be identified as the details are private. Conversations are preliminary and a deal may not come to fruition, they cautioned.
A Castlelake spokesperson declined to comment, while a representative for Concora didn’t respond to requests for comment.
Beaverton, Oregon-based Concora, previously known as Genesis Financial Solutions, provides debt to non-prime consumers, including in the form of credit card programs. The consumer lender has tapped the asset-backed bond markets in the past, bundling credit card debt into bonds of varying risk and size, according to data compiled by Bloomberg News.
The potential sale of the company comes as consumers in the US struggle to pay back their debt, with delinquency rates on credit cards and auto loans reaching the highest in more than a decade, especially among borrowers with lower credit scores.
Castlelake itself recently struck a partnership with Brookfield Asset Management, through which the Canadian investing giant got a majority share of the firm’s fee-related earnings.
©2024 Bloomberg L.P.
