Warburg Pincus is exploring a potential sale of subprime auto lender Exeter Finance that could be valued at between $2.5bn and $3bn, according to a report by Bloomberg citing unnamed people familiar with the matter.
The New York-based private equity firm is engaging advisers to gauge interest from potential buyers, though it is also weighing an initial public offering as an alternative.
No final decision has been made, and Warburg could choose to retain Exeter, taccording to Bloomberg’s sources. Both Warburg and Exeter reportedly declined to comment.
Founded in 2006 and based in Irving, Texas, Exeter provides retail installment loans to consumers with lower credit scores through independent dealerships and franchises. The lender works with more than 15,000 dealers and roughly 650,000 customers across the US.
Warburg acquired Exeter in 2021 from Blackstone for an undclosed figure.
