GRAPEVINE, Texas, Jan. 16, 2015 /PRNewswire/ -- Praxis Finance LLC (Praxis) today announced the closing of an investment partnership with affiliates of global alternative investment management firm Varde Partners (Varde). Varde has committed up to $100 million of capital to facilitate the purchase of auto finance receivables by the joint venture entity.
Praxis was founded by auto finance veterans Daniel Parry and Steve Moses. Parry most recently served as Co-Founder and Chief Credit Officer of Exeter Finance from 2006 to 2014, a period where Exeter grew from a startup to a $2.5 billion portfolio. Prior to Exeter, Parry served as SVP at AmeriCredit. Steve Moses, formerly with Associates First Capital and Bank of America, as well as Chief Financial Officer for Transplace and Taylor Logistics, served as Exeter's Chief Financial Officer from 2008 through 2013 and led the development of Exeter's $2 billion asset-backed bond program.
Praxis was founded in 2014 with the purpose of serving dealers and consumers across the United States, with a specific focus on the non-prime market. Based in Grapevine, Texas, Praxis will initially concentrate on acquiring portfolios in the Gulf Coast states, but ultimately intends to work with dealers and lenders across the United States.
Steve Moses, President of Praxis, stated, "We are excited about the opportunity to partner with Varde, as Praxis is uniquely positioned to bring both competitive pricing and high service levels to the market."
Daniel Parry, Chief Executive Officer of Praxis, said, "The auto finance market has changed significantly in the last few years. Having a good business model is no longer enough. Successful lenders must also be viewed as best in class operators by the capital markets and regulators. Accomplishing this takes the right financial partner, which is why we are very pleased to have the opportunity to work with Varde."
"This transaction is consistent with our strategy of investing in specialty-finance companies with the potential for strong growth," said Chris Giles, Senior Managing Director of Varde. "Praxis has extensive experience in the auto finance market, and we look forward to working with their team to successfully invest in the non-prime auto finance space."
Varde was represented by Kirkland & Ellis LLP. Praxis was represented by Katten Muchin Rosenman LLP and received strategic consulting from Chris Hawke and Steve Gertz of Trinity Resource Partners, LLC.
About Praxis Finance LLC
Praxis Finance LLC is a non-prime auto finance company focused on purchasing and servicing auto finance portfolios from dealers and lenders throughout the United States. The company was founded in 2014, and is headquartered in Grapevine, Texas. For more information, visit www.praxis-llc.com.
About Varde Partners
Varde Partners is a $9.0 billion global alternative investment firm that employs a credit-oriented, value-based approach to investing across a broad array of geographies, segments and asset types, including corporate credit, residential mortgages, real estate, specialty finance, transportation and infrastructure. Founded in 1993 Varde Partners employs 200 people with offices in Minneapolis, London and Singapore.
SOURCE Praxis Finance LLC