Middlemarch Partners has acted as the sole merchant banking adviser in the completion of a USD21.95 million preferred equity raise for FlexShopper, an online provider of lease-to-own (LTO) financing and payment solutions for consumers.
Middlemarch Capital Partners, Middlemarch Partners' co-investment arm, invested alongside a USD5 billion private equity fund that led the investment round.
The financing will enable FlexShopper to accelerate its growth in originating consumer leases through its LTO e-commerce marketplace and patent pending LTO payment method that is used by leading retailers across the US.
FlexShopper is able to support LTO transactions online, in stores, and via its smart phone application, the FlexShopper wallet. Through its partnerships with leading retailers of electronics, appliances, furniture, musical instruments, and equipment, FlexShopper offers over 80,000 different items all on a lease-to-own basis.
Internet Retailer recently named FlexShopper as the fastest growing consumer electronics e-retailer in the US for 2015.
Brad Bernstein, chief executive of FlexShopper, says: "We are very pleased with this capital raise. Securing the support of our lead investor will assist us in growing our franchise with leading retailers in electronics, appliances, and furniture. The funds will also allow us to reach more American consumers who deserve the opportunity to lease the branded merchandise they love."
Dean Larson, of Middlemarch Partners, adds: "Earlier this year we launched Middlemarch Capital Partners to offer institutional investors and family offices the opportunity to invest alongside blue-chip lead investors in Middlemarch Partners-sourced investment opportunities.
"Our investment in FlexShopper includes capital from our Partners as well as several family offices that believe in the capital appreciation potential of FlexShopper. We look forward to sharing other investment opportunities sourced through our merchant banking activities with interested debt and equity investors."
