Victory Park Capital has announced a $50 million investment in Renovo, a lending company that assists investors who purchase, refurbish, and sell or rent residential properties.
Chicago, Illinois, April 15 2015: In a clear diversification from its existing investment strategy, Victory Park Capital has announced a purchase of a $50 million stake in Chicago based private lending company Renovo, with options to increase the investment to $100 million.
The purchase is most interesting because it diversifies Victory Park’s investment portfolio away from its focus of market debt and equity investment. Renovo’s business is concentrated entirely in making loans to assist investors with rehabilitation projects, primarily including the purchase, renovation, and selling or renting of residential properties, in the Chicago area. For Renovo, the deal offers a perfect method of refinancing its existing loan portfolio, as well as provide the money to support expansion into new markets and the capital to grow its portfolio.
Tom Affolter, a partner at Victory Park, said the investment was opportunistic, and that it will help Renovo to accomplish its goals. “Renovo’s market leadership in the Chicagoland area, experienced management team and industry knowledge are exceptional,” he said.
Kevin Werner, CEO of Renovo, agrees, saying, “Our goal for Renovo is to play an active role in addressing the funding needs of the residential rehab community. The massive dislocation in the credit markets during the recession provided an opportunity for a specialized finance company, like Renovo, to provide capital to creditworthy residential rehabbers. In partnering with VPC, we are pleased to have secured a large amount of capital to fulfill the needs of our borrowers as they continue to enjoy success in their businesses.”
The management team at Renovo see the partnership as not only bringing capital to the table, but also a wealth of experience, too. Victory Park Capital was founded by Werner and Granite Creek Partners in 2011, as a solution to credit worthy investors who couldn’t access the financing they needed after the financial crisis. It now plans to diversify its product offering and accelerate growth.
Partner at Granite Creek, Mark Radzik, said, “We are excited to team up with a firm as knowledgeable and experienced in the specialty lending industry as VPC to continue to scale our business. With our seasoned leadership and VPC’s expertise, we are confident Renovo is well positioned to drive future growth.”