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GWG Expands Into Merchant Cash Advance Market with Acquisition.

M2 EQUITYBITES-March 10, 2016-GWG Expands Into Merchant Cash Advance Market with Acquisition

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10 March 2016 - US-based specialty finance company GWG Holdings, Inc. (NASDAQ: GWGH) has expanded into the merchant cash advance arena with the acquisition and formation of subsidiary GWG MCA Capital, Inc., the company said.

New York-based GWG Merchant Cash Advance provides capital to small businesses nationwide, filling a significant gap in the market for small business funding created by the increased capital and regulatory burdens of traditional lenders.

GWG Merchant Cash Advance acquired a USD 4.3m portfolio of loans and advances from a subsidiary of Walker Preston Capital.

As part of the transaction, GWG Merchant Cash Advance retained former Walker Preston Capital chief executive officer Patrick F. Preece, who has joined GWG Merchant Cash Advance as its president and chief operating officer.

Prior to Walker Preston Capital, Preece was head of asset securitisation for Autobahn Funding, a USD 6bn commercial paper conduit for DZ Bank that specialised in alternative asset classes.

Throughout his career, Preece has focused on the origination and management of structured finance and asset-backed lending with an emphasis on specialty finance.

GWG Merchant Cash Advance provides secured loans to established merchant cash advance funders as well as funding advances directly to small businesses across the United States.

The combination of product offerings is intended to drive a consistent flow of transactions with attractive risk-adjusted yields to GWG Merchant Cash Advance.

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Publication:M2 EquityBites (EQB)
Date:Mar 10, 2016
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