Arra Finance Expands Subprime Auto Operations With Crescent Bank Acquisition
Arra Finance, a subprime auto finance company, has expanded its operations with the acquisition of Crescent Bank's auto finance division. The deal, closed on 15 September 2022, increases Arra's auto finance origination capacity and enhances its platform's scalability. Guy Weismantel, Arra's CEO, and Aaron Watts, CFO, have led the company's strategic growth, including securing diverse capital sources and partnerships with Capital One and Yahoo Finance.
Arra's recent acquisition allows it to service Crescent Bank's $770m auto loan portfolio, in addition to its own loans. This deal increases Arra's auto finance origination capacity, enabling it to meet more dealer needs. Arra's platform, designed to provide near immediate credit application responses and a strong financing pipeline, will now be able to support this expanded portfolio.
To support this growth, Arra has secured access to a credit warehouse facility with Goldman Sachs and signed a multi-year forward flow agreement with Obra Capital. These partnerships provide Arra with diversified and reliable capital sources, ensuring it can continue to meet dealer needs. Arra aims to advance the subprime auto financing market, as stated by Kenn Wardle, Arra's chief executive.
The acquisition of Crescent Bank's auto finance division, coupled with strategic partnerships and a robust platform, positions Arra Finance for growth in the subprime auto financing market. With enhanced scalability and access to diverse capital sources, Arra is well-equipped to service a larger portfolio and meet the needs of more dealers. The company's forward-looking approach, led by its CEO Guy Weismantel and CFO Aaron Watts, is set to reshape the industry.
