Velocity Financial Group said Tuesday that it has closed a management led buyout of Velocity’s business lines from Core Financial Holdings. Financial terms were not announced. American Capital, a publicly traded PE firm, owns a majority stake in Core Financial. Boston-based Velocity is a specialty finance company that serves both PE and VC companies. Parish Capital Advisors provided financing.
Velocity Financial Group, a leading provider of financing solutions to venture capital and private equity-backed companies, today announced that it has closed on a management-led buyout of the Velocity business lines from Core Financial Holdings, which is majority owned by American Capital, Ltd. The acquisition financing was led by Parish Capital Advisors, a diversified private investment firm with more than $2 billion of capital under management. Since its inception in 2007, Velocity Financial Group has actively and consistently served the entrepreneurial community, despite the challenging market environment, having provided capital to more than fifty companies in the form of senior and subordinated term loans and equipment financing.
“On behalf of our entire team, I am very pleased to announce the expansion of our financing partners,” said Jan Haas, founder and president of Velocity. “Despite the continued volatility in the broader credit markets, our portfolio remains strong and our team has continued to identify and close on compelling investment opportunities in companies across a wide range of industries and growth stages. This transaction is positive validation of Velocity’s unique approach to financing innovation and our unwavering commitment to entrepreneurs.”
“We are delighted to announce our investment in the Velocity team and portfolio,” said Joe Topley, managing director of Parish Capital. “In getting to know Velocity, we’ve been very impressed with their extensive domain expertise, their innovative approach to the market and the outstanding performance of their portfolio through a challenging market environment. We look forward to a very successful and long-term relationship with Velocity.”
ABOUT VELOCITY FINANCIAL GROUP: Velocity Financial Group is a leading specialty finance company serving venture capital and private equity-backed companies. Velocity is dedicated to helping entrepreneurs by providing less dilutive, more flexible forms of capital. With offices in Boston and Silicon Valley, Velocity has built a broad client base consisting of pioneering technology, life science and clean energy companies. Clients range from pre-revenue companies with dedicated entrepreneurs to late stage, proven businesses seeking more efficient growth capital. For more information, please visit www.velocityfg.com.
ABOUT PARISH CAPITAL ADVISORS: Parish Capital Advisors, LLP was founded in 2003 to provide a full service private equity solution focused solely on “ESN” opportunities, including emerging manager opportunities through funds-of-funds, separate accounts, and advisory services. ESN managers are defined as Experienced private equity investors with Smaller pools of capital and Niche sector, geographic and/or strategy focus. The Partnership focuses primarily on small and lower middle market buyout, growth equity, venture capital, and special situations funds that are less than $500/EUR 500 million in size in North America and Europe. With offices in Chapel Hill, NC, London, and New York, Parish Capital manages over $2.0 billion for its institutional investors. For additional information, please visit www.parishcapital.com.