NEW YORK –
A little more than a week after rolling out the sixth securitization in company history, Tricolor Auto landed a significant financial commitment from Kennedy Lewis Investment Management.
Kennedy Lewis, which classifies itself as an opportunistic credit manager, has funded a $50 million committed secured corporate loan facility to Tricolor Auto, a Community Development Financial Institution (CDFI) and used-car retailer focusing on the sale and financing of vehicles to Hispanics.
According to a news release, this loan provides financing to Tricolor against its portfolio of auto receivables and highlights Kennedy Lewis’ expertise in structuring complex lending facilities to specialty finance companies.
The firms noted this infusion of funds will support Tricolor’s efforts to continue to scale its platform and retail network, as well as increase access to its auto-financing options.
Dik Blewitt is a partner Kennedy Lewis, head of tactical opportunities and co-head of its environmental, social and governance (ESG) investments.
“We are excited to partner with Tricolor and its outstanding team with whom we have an aligned ambition to extend responsible financial products to underserved communities,” Blewitt said.
“We continue to be impressed by Tricolor’s exceptional reputation, differentiated business model and proprietary technology. We look forward to working with the company to significantly grow its footprint,” Blewitt continued.
Along with the securitization, this loan arrived after Tricolor received a $30 million preferred equity investment from a global institutional investor back in February. Since its founding in 2007, the company has served more than 65,000 customers and originated more than $1 billion in financed contracts.
“We are excited to partner with Kennedy Lewis given its impressive track record and industry expertise,” Tricolor founder and chief executive officer Daniel Chu said.
“This funding comes at a time of rapid growth for Tricolor and will help fuel the continued expansion of our responsible lending platform so that we can provide affordable, credit building auto loans to even more underserved Hispanic consumers,” Chu said.