CreditMax, an electronic exchange for the sale and purchase of distressed consumer debt, has received a growth equity investment from PPF Finance, a subsidiary of PartnerRe, and Metropolitan Equity Partners.
The investment is designed to enable the expansion of CreditMax’s NDSE Trading Platform and the launch of CreditMax’s debt lending programme for qualified debt buyers.
CreditMax’s NDSE exchange enables sellers to list debt for sale on a national, regional, state, local, or account-specific basis. The platform enables buyers to identify and analyse portfolios and to acquire those assets that have the most value to them.
The capital investment is being used to expand operations to increase the supply of debt on the NDSE as well as to provide financing on terms commercially unavailable elsewhere to portfolio buyers.
Chief executive Stephen Kass says: "The investment from PartnerRe and Metropolitan Equity enables us to offer financial leverage to a range of debt buyers, from smaller buyers seeking USD50,000 for spot trades to larger buyers seeking multi-million dollar flow agreements."
Sasha Grutman, special partner of Metropolitan Equity Partners, says: "As investors, we have seen what pricing transparency, electronic efficiency, and a deeply experienced capital markets team have done for numerous other financial services verticals. CreditMax will bring those same benefits to the distressed consumer debt industry."
PartnerRe and Metropolitan Equity Partners join a company board that includes advisory members Les Biller, former vice chairman of Wells Fargo, Herb Lurie, former head of merger and acquisitions financial services banking at Merrill Lynch, and Michael Hayward, former vice chairman of Fleet First Boston.
