Rockbridge Growth Equity, LLC, a Detroit-based private equity firm that invests in financial and business services, consumer-direct marketing, and sports, media and entertainment industries, has led the acquisition of Purchasing Power, LLC, a niche e-commerce business that provides employers a unique benefit to offer their employees: the opportunity to leverage their paycheques to buy "big ticket" consumer goods regardless of credit score.
Founded in 2001, Purchasing Power’s web-based business enables a qualified work force the ability to purchase an assortment of items, such as brand name computers, electronics and other expensive items via direct payroll deduction.
"Purchasing Power is a distinctive e-commerce platform that provides an affordable, consumer-friendly credit alternative," says Kevin Prokop, Rockbridge Growth Equity Partner. "We believe Purchasing Power’s revolutionary and scalable operating platform, superior client service, and world-class management team will be the foundation for substantial growth in years to come."
Over the past three years, Purchasing Power’s client list has grown by an average of 51 percent per year, making it the dominant leader in its market. The company’s 150 team members have serviced more than 600,000 orders since inception from a myriad of clients, ranging from Fortune 500 companies to government agencies. Purchasing Power differentiates itself from traditional e-commerce retailers through its unique payment plan value proposition, strategic benefit broker partnerships, internal marketing expertise and superior customer service.
Falcon Investment Advisors, a Boston based private equity firm with substantial investing experience across a variety of industries, partnered with Rockbridge in the acquisition, providing additional junior capital financing. Purchasing Power’s current President, Richard Carrano, has been named CEO of the company.
"We are excited to partner with Rockbridge and Falcon. Rockbridge’s deep operating knowledge and expertise in technology enabled service businesses and direct-to-consumer marketing will further accelerate Purchasing Power’s growth," says Carrano.
Goldman Sachs Specialty Lending Group, LP and Fortress Credit Corp. were the lead agents on the USD127 million senior secured credit facility provided to Purchasing Power. The credit facility will also support significant future organic growth opportunities for Purchasing Power.
