Financeit is Canada’s leading financing provider in the home improvement industry, closing
2021 with over $2.3 billion in lifetime loan originations
Financeit announced today that Wafra Capital Partners Inc. (“WCP”), a New York-based specialty finance investment firm, has acquired the Company from Goldman Sachs Asset Management.
Financeit is Canada’s leading point-of-sale financing provider for the home improvement industry and powers sales transactions for merchants in home services, recreational vehicle, and retail with technology-driven customer payment plans. In 2021, Financeit added over 1,100 new merchant partners, processed over 115,000 loan applications, and funded a record $534 million in loan originations. The Company also announced that it had reached $2 billion in lifetime loan originations, taking only two years to double the previous milestone of $1 billion, which was reached in 2019.
“We are very excited to be partnering with WCP through this acquisition,” said Financeit CEO Michael Garrity. “Even with our incredible growth to date, management fundamentally believes that our greatest growth is still in front of us. Given the WCP team’s depth of knowledge in loan origination platforms, we are excited to work with them to accelerate our services and market penetration in the coming years. Together, we will strengthen our position as the leading provider of point-of-sale consumer credit, while also expanding our range of products and adding new industry verticals to our point-of-sale channel.”
WCP is a New York-based investment advisory firm with over $7 billion in fund assets and commitments under management. As Financeit continues to expand its operations, WCP’s investment will support its projected growth towards $1 billion in annual loan originations, allowing the Company to expand its strategic partnerships and the advancement of product innovation.
“Wafra Capital Partners is excited to join the Financeit ownership group and invest in one of Canada’s top point-of-sale consumer financing companies. We are confident that our capital and strategic insight will further evolve the progression that is already underway, allowing Financeit to reach a new ambitious milestone in the years ahead,” said Michael Gontar, CEO of Wafra Capital Partners.
Anthony Arnold, Managing Director in the Private Equity business at Goldman Sachs Asset Management, said, “We would like to thank Michael, Casper, and the rest of the Financeit team for their leadership over the course of our investment. Under our ownership, the Company has significantly grown in scale, institutionalized its credit platform, diversified its funding sources, and augmented its product and home improvement service capabilities. We are delighted that they have found a new partner to support them as they continue to capitalize on the strong tailwinds in the large, fast-growing point-of-sale financing industry, especially in home improvement. We wish both parties much success.”
Casper Wong, President of Financeit, said, “We look forward to the next chapter of growth and innovation in the Financeit story with our new partners. The Canadian Home Improvement industry is worth over $70B in annual sales and has shown incredible growth during the last few years. Our strong merchant relationships and leading technology platform uniquely allow us to continue expanding our market leadership position.”
Advisors and Counsel
BMO Capital Markets, Raymond James Ltd. and RBC Capital Markets acted as financial advisors to Financeit. Sullivan & Cromwell LLP and Osler, Hoskin & Harcourt LLP acted as legal counsel to Financeit in connection with the Transaction. Macquarie Capital acted as financial advisor and Hughes Hubbard & Reed and Blakes, Cassels & Graydon LLP acted as legal counsel to WCP.
Financeit Canada Inc. is a point-of-sale financing provider that serves home improvement, recreational vehicle, and retail industries. The company provides payment plans to enterprise businesses, big box retailers, OEMs, and dealer networks for their projects and purchases, as well as offers solutions for consumers. Its cloud-based technology enables merchants to increase close rates and transaction sizes with monthly or bi-weekly payment plans. Financeit’s platform features a transparent loan application process and has serviced merchant partners across Canada. Financeit was founded in 2011, is based in Toronto, Canada, and operates as a subsidiary of CommunityLend Holdings Inc.
Wafra Capital Partners (“WCP”), a New York-based investment management firm, manages or advises funds and accounts that specialize in asset-based finance and real estate investments. WCP has significant experience with structured finance, venture debt, equipment leasing and finance, transportation finance, and other specialty finance transactions as well as real estate and real estate debt, and its team has been operating in these arenas since 1999.
About Goldman Sachs Asset Management Private Equity
Bringing together traditional and alternative investments, Goldman Sachs Asset Management provides clients around the world with a dedicated partnership and focus on long-term performance. As the primary investing area within Goldman Sachs (NYSE: GS), we deliver investment and advisory services for the world’s leading institutions, financial advisors and individuals, drawing from our deeply connected global network and tailored expert insights, across every region and market—overseeing more than $2 trillion in assets under supervision worldwide as of December 31, 2021. Driven by a passion for our clients’ performance, we seek to build long-term relationships based on conviction, sustainable outcomes, and shared success over time. Goldman Sachs Asset Management invests in the full spectrum of alternatives, including private equity, growth equity, private credit, real estate and infrastructure. Established in 1986, the Private Equity business within Goldman Sachs Asset Management has invested over $75 billion since inception. We combine our global network of relationships, our unique insight across markets, industries and regions, and the worldwide resources of Goldman Sachs to build businesses and accelerate value creation across our portfolios. Follow us on LinkedIn.