FIFS Holdings Corp. Announces Merger With Affiliate Of Gallatin Point Capital
HOUSTON, Jan. 5, 2021 /PRNewswire/ — FIFS Holdings Corp., parent company to First Investors Financial Services Group (“First Investors” or the “Company”), today announced that the acquisition of the Company by funds affiliated with Gallatin Point Capital (“Gallatin Point”) and minority investor Jacobs Asset Management (“JAM”) closed on December 31, 2020 following receipt of all required consents and regulatory approvals.
Terms of the merger were not disclosed, but a portion of the proceeds from the transaction will serve to retire certain indebtedness of the Company and provide additional working capital to grow and expand the Company’s lending businesses as well as to accelerate its portfolio acquisition capabilities and third-party servicing segment. The executive management team, with an average tenure of 17 years with the Company, is expected to remain in place.
Tommy Moore, Jr., President and CEO of First Investors, noted: “We are excited to close the merger transaction which will allow the management team to resume its strategy of prudently growing organic originations in business segments that provide us with attractive risk-adjusted returns while strategically looking for opportunities to expand our lending partnerships, pursue portfolio acquisition opportunities, and establish third-party servicing relationships.”
Matt Botein, Co-Founder and Managing Partner of Gallatin Point, said: “First Investors has an outstanding financial and operational track record and a distinguished reputation for how it conducts its business. We are very excited to partner with its strong management team to accelerate growth opportunities and enhance First Investors’ capacity to deliver value to its customers.”
Sy Jacobs, Founder and Managing Partner of JAM, said: “It is great to be working with Gallatin Point and the same management team I so admired and enjoyed working with during my 10 years on the board while the Company was publicly-traded.”
Credit Suisse Securities (USA) LLC served as exclusive financial advisor and Willkie Farr & Gallagher LLP acted as legal advisor to First Investors. Wells Fargo Securities LLC served as exclusive financial advisor and Goodwin Procter LLP acted as legal advisor to Gallatin Point and the investor group.
ABOUT FIRST INVESTORS FINANCIAL SERVICES GROUP, INC.
The Company is a consumer finance company engaged in originating and holding for investment automobile finance receivables and promissory notes originated by franchised automobile dealers or through refinancing transactions with the vehicle owners. The Company specializes in lending to consumers with impaired credit profiles. The Company also purchases receivables through portfolio acquisitions or from third party originators and performs third-party loan servicing for unaffiliated clients. The Company is headquartered in Houston, Texas and has been in business for 32 years. Copies of this press release and other information about the Company are available on the Company’s web site at www.fifsg.com.
ABOUT GALLATIN POINT CAPITAL LLC
Gallatin Point Capital LLC is a private investment firm with a primary focus on making investments in financial institutions, services, and assets. The firm’s approach is to identify opportunities that arise from complexity, dislocation, or changes in technology and regulation. Gallatin Point aims to form highly collaborative partnerships with its investors and with management teams of its portfolio companies, seeking to combine the right capital with the right managerial competencies in order to maximize the outcome for all stakeholders. More information about Gallatin Point can be found at www.gallatinpoint.com.
ABOUT JACOBS ASSET MANAGEMENT LLC
Founded in 1995, Jacobs Asset Management (“JAM”) manages a long/short equity hedge fund and several other vehicles that seek to make long-term, high-return investments exclusively in financial services businesses. In 2020, JAM launched JAM Special Opportunity Ventures (“JSOV”) to forge partnerships with top management teams, innovators and asset managers in the financial services industry. First Investors is JSOV’s second investment. More information about JAM can be found at www.jampartners.com.
The statements contained in this release that are not historical statements of fact may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements may often be, but are not always, identified by the use of such words such as “intends”, “anticipates”, or “proposes, or by statements that certain actions, events or results “may” or “will” be taken, occur or be achieved, and may include statements about future operations and the anticipated timing for any proposed actions. Any such forward-looking statements involve a number of risks and uncertainties, and the actual results of future events could differ materially from those stated in any forward-looking statements herein. Readers should not place undue reliance on any such forward-looking statements, which are made only as of the date of this release. The Company undertakes no obligation to revise or update publicly any such forward-looking statements for any reason.
First Investors Contact: Bennie H. Duck
Telephone: (713) 273-5116
Gallatin Point Contact: Bridget Cole
Telephone (203) 742-0209
JAM Contact: Ryan Zacharia
Telephone (212) 271-5126
SOURCE FIFS Holdings Corp.