Chesswood Group announced it successfully completed the sale of the operations of its Case Funding subsidiary along with most of Case Funding’s attorney loan portfolio, to a U.S. based private equity firm.

The purchase price paid to Case Funding was $4.4 million. The sale, which results in a small pre-tax net gain, will allow both capital and Chesswood management attention to be focused on the expansion of Chesswood’s other North American businesses.

“While the offer to purchase the Case Funding operations was unsolicited, we saw the transaction as not only providing us with a modest gain on our investment of only a few years, but more importantly an opportunity to seek both organic growth and acquisitions that are better aligned
with our desire to invest in scalable finance businesses” said Barry Shafran, Chesswood’s president and CEO.

“This sale and our recently entered into credit facility are two more steps toward our strategic growth and capital allocation initiatives. In addition to the attorney portfolio, the purchaser takes over the very capable Case Funding team and operations, which did an outstanding job of taking a start-up business to profitability in a very short time”.

Most of Chesswood’s earnings are generated in U.S. dollars by our American subsidiaries Pawnee Leasing Corporation and Windset Capital Corporation.

Chesswood’s strategic focus is the growth, both organically and through acquisitions, of its North American finance businesses, composed of companies that can provide superior returns on capital.