Avenue Capital Group has acted as sole lender and agent in connection with the debt financing of the acquisition of Freedom Finance Nordic, the largest prime consumer loan broker operating in Sweden, Norway and Finland, by HIG Europe.
Avenue also has made a minority equity investment in Freedom Finance Nordic alongside HIG Europe, the European arm of global private equity firm HIG Capital.
The debt facilities provided by Avenue consist of a unitranche acquisition facility and a revolving credit facility. They closed in early May 2013.
"Avenue is very pleased to have been able to provide the debt facilities to Freedom Finance Nordic, which, under the stewardship of HIG Europe, is expected to continue its rapid growth in serving the consumer loans market in Scandinavia," says Marc Lasry, the chairman and chief executive of Avenue Capital Group. "This financing was the first completed by our recently formed direct lending team, which provides an alternative source of debt financing predominantly to mid-sized European corporate borrowers with limited access to traditional lines of credit following the financial crisis."
Peter Lockhead, who joined Avenue from Bank of America Merrill Lynch, is the portfolio manager leading the firm’s direct lending initiative in Europe. The team also includes Luis Mayans, who joined Avenue from GE Capital’s leveraged finance team in London, and Cliff Wagner, who was previously with Cerberus European Capital Management in London.
Avenue’s Europe Strategy is led by senior portfolio manager Richard Furst, who oversees a team of 22 dedicated investment professionals in London and Munich. Furst also serves as Avenue’s chief investment officer.
