NEW YORK, July 6, 2017 /PRNewswire/ -- CAN Capital, a small business specialty finance company that has provided more than $6.5 billion in working capital to over 75,000 small businesses over the past 19 years, is returning to funding following a recapitalization by Varadero Capital, a New York based alternative asset manager. DLA Piper served as legal counsel for, and Jefferies was the financial advisor to, CAN Capital, while Mayer Brown was legal counsel to Varadero Capital, L.P. The terms of the deal were not disclosed.
CAN Capital will immediately begin funding existing small business customers that are eligible for a renewal and will start funding new customers by working with select sales partners. The company will have two products available in all 50 states, term loans and merchant cash advances with funding amounts from $2,500 to $150,000. Both products will deliver funding to customers in as little as a few business days, ensuring quick access to help small business owners grow their businesses.
"We're thrilled to leverage Varadero Capital's specialty financing expertise and capital. They are a seamless fit and support our mission of helping small business owners succeed with fast, efficient access to working capital," said Parris Sanz, CEO, CAN Capital. "We have developed strategic relationships with sales partners over the past 19 years that have proven traction in serving the small business community. We're committed to continuing and growing those relationships as we move forward with the next phase of the company and reengage with our customers."
Mr. Sanz added "Varadero has proved to be a reliable capital partner for the company. They demonstrated a unique ability to analyze risk and create alignment with a focus on contributing to the long-term health and growth of CAN Capital."
"We were impressed with the overall value proposition of CAN's offerings as evidenced by the strength of its long standing relationships, the company's core team, sound underwriting practices, technology and the strong performance of their credit extension throughout the cycle," said Fernando Guerrero, Managing Partner and Chief Investment Officer, Varadero Capital. "We're confident the company's focused funding practices will allow it to serve small business customers for many years to come."
CAN Capital was founded in 1998 by a small business owner whose revenue fluctuated depending on the season and had difficulty getting a business loan from a bank. To solve this problem, CAN Capital created a customer-centric, technology-driven solution that made it simpler, faster and easier for small business owners to get access to capital to smooth out their cash flow and invest in their business. Over the past 19 years, CAN Capital has continued to build out its proprietary data-driven models, machine-learning algorithms and deep insights into small business performance to help its customers grow.
About CAN Capital
CAN Capital, Inc., established in 1998, is the pioneer in alternative small business finance, having provided access to over $6.5 billion in capital for over 75,000 small businesses in a wide range of locations and different business types. As a technology-powered financial services provider, CAN Capital uses innovative and proprietary risk models combined with daily performance data to evaluate business performance and facilitate access to capital for entrepreneurs in a fast and efficient way.
CAN Capital, Inc. makes capital available to businesses through business loans made by WebBank, member FDIC, and through Merchant Cash Advances made by CAN Capital's subsidiary CAN Capital Merchant Services, Inc. ©2017 CAN Capital. All rights reserved.
About Varadero Capital
Varadero Capital, L.P., founded in 2009, is a value-driven alternative asset manager focusing on investments across the specialized credit markets. The firm is based in New York and currently manages approximately $1.3 billion in capital. In the past five years, Varadero has allocated over $1 billion in capital toward specialty finance platforms in various sectors including consumer and small business lending, auto loans and commercial real estate.
SOURCE CAN Capital