Castlelake Reaches Purchase Agreement for Home Improvement Contract Claims Issued by Credibly’s ProApprove Program
Transaction continues Castlelake’s strong momentum in specialty finance
MINNEAPOLIS, June 13, 2022 /PRNewswire/ — Castlelake, LP (“Castlelake”), a global alternative investment manager with 17 years of experience investing in asset-rich opportunities, today announced an agreement with ProApprove to acquire up to ‘at $350 million receivables relating to new installment renovation contracts. ProApprove is a wholly owned subsidiary of Credibly, a technology-driven small and medium business lending platform.
ProApprove plans to leverage Credibly’s extensive merchant network, which includes several hundred residential contractors. Home improvement spending in the owner-occupied housing stock has grown steadily since 2019 and is expected to continue rising in 20221. The new installment contracts created by ProApprove will be informed by approximately 10 years of debt collections data on home improvement financing customers in more than $55 million of financing.
“We are excited to support the expansion of ProApprove’s home improvement financing program at a time when demand for financing solutions from homeowners across the United States increases,” said, Matt Small, Partner, Global Specialty Finance and Business Development & Capital Markets at Castlelake. “We believe ProApprove’s parent company, Credibly, has established itself as an experienced, risk-focused commercial lending platform. We believe this transaction provides an opportunity to support a new product for Credibly in a growing market. historically underserved consumption.”
“Castlelake’s experience in revolving credit underwriting is invaluable as we seek to accelerate the ProApprove program and expand access to financing for residential contractors and homeowners,” said Ryan Rosettaco-founder and managing director of Credibly.
Since 2015, Castlelake has invested more than $3 billion in specialty finance opportunities, including more than 3,500 commercial and industrial loans and more than five million accounts receivable. Recent activity includes Castlelake’s investment in IMH, a specialist lender that helps small and medium-sized property investors and developers meet short-term liquidity needs; a forward purchase agreement with Chesswood, a specialist finance company specializing in the commercial equipment finance market; and a financing agreement with 118 118 Money, a UK-based financial services company focused on providing high-integrity products that help consumers build good financial habits.
About Castle Lake
Castlelake, LP is a global alternative investment manager focused on investments in real assets, specialty finance and aviation. Founded in 2005, Castlelake manages approximately $21 billion in assets. The Castlelake team includes more than 250 experienced professionals, including 95 investment professionals, across six offices in North America, Europe and Asia. For more information, please visit https://www.castlelake.com/.
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1 Joint Center for Housing Studies Harvard University“Advanced indicator of renovation activity (CRI)”, October 2021and “Residential renovation in the best metros will accelerate in 2022”, February 24, 2022.