Bregal Sagemount has invested $40 million in Open Lending LLC for a “significant” minority position. Austin-based Open Lending provides loan analytics, risk-based pricing, risk modeling and automated decision technology for automotive lenders. Vaquero Capital LLC and Andrews Kurth LLP provided financial and legal counsel to Open Lending. Goodwin Procter was the attorney for Bregal Sagemount.

PRESS RELEASE

March 22, 2016 06:30 AM Eastern Daylight Time
NEW YORK–(BUSINESS WIRE)–New York-based growth-focused private capital firm Bregal Sagemount announced this morning that it has closed a $40 million equity investment in Open Lending, LLC, securing a significant minority position in the automated lending services provider. Based in Austin, Texas, Open Lending specializes in loan analytics, risk-based pricing, risk modeling and automated decision technology for automotive lenders throughout the United States. As part of the deal, Bregal Sagemount executives Gene Yoon and Blair Greenberg will join Open Lending’s board.

“We believe Open Lending’s platform provides financial institutions the most affordable, effective, and timely system for evaluating portfolio risk and insuring auto loans,” said Open Lending CEO John Flynn. “This in turn allows them to offer more credit to customers who need it throughout the United States, without jeopardizing the lenders’ financial stability. We’re looking forward to partnering with Bregal Sagemount and leveraging their proven expertise in growing financial technology and payments solutions companies.”
The funds will be used to fuel further growth for Open Lending within the automated lending industry, and allow the Company to accelerate its expansion among financial institutions, credit unions, and regional banks. Open Lending’s automated platform allows lenders to better evaluate near- and non-prime auto loans through analytics, risk-based pricing, risk modeling and default insurance, thereby ensuring profitable auto loan portfolios for financial institutions. “Technology is revolutionizing the way credit and capital is made available to consumers,” said Mr. Greenberg, Principal at Bregal Sagemount. “We believe that financial institutions have an incredible opportunity to increase their loan volumes and customer base by utilizing technology platforms like Open Lending’s.”

“Open Lending has a tremendous opportunity to apply its unique combination of data analytics and automated decision processing to create a market with risk-based pricing and more transparency to both borrowers and lenders,” added Mr. Yoon, Managing Partner of Bregal Sagemount. “We’re eager to apply our knowledge and investing experience within the financial technology sector to provide Open Lending the strategic resources needed for continued growth.”
Goodwin Procter served as legal advisor to Bregal Sagemount. Vaquero Capital LLC and Andrews Kurth LLP provided financial and legal counsel to Open Lending, LLC.

About Bregal Sagemount:

Bregal Sagemount is a growth-focused private capital firm with $650 million in committed capital. The firm provides flexible capital and strategic assistance to market-leading companies in high-growth sectors across a wide variety of transaction situations. Bregal Sagemount invests $8 million to $150 million per transaction into targeted sectors including software, digital infrastructure, healthcare IT / services, business and consumer services, and financial technology / specialty finance. For more information, please visit www.sagemount.com.

About Open Lending, LLC.

Open Lending has built a strong platform through its flagship product, Lenders Protection, offering loan analytics, risk-based pricing, risk modeling and default insurance. Lenders Protection ensures profitable auto loan portfolios for financial institutions throughout the United States. For more information, please see www.OpenLending.com.