Victory Park Capital Expands into Real Estate Sector with Investment in Renovo Financial | Business Wire
Park Capital (VPC), an asset management firm focused on middle
market debt and equity investments, announced today that it will make a
$50 million investment, with a $100 million potential upsize, in Renovo
Financial, a Chicago-based private lending company that assists
rehabilitation investors in acquiring, renovating and selling/renting
residential properties. The investment will refinance Renovo’s existing
portfolio, finance loan portfolio growth and support expansion into new
markets outside of the Chicagoland counties.
“Renovo’s market leadership in the Chicagoland area, experienced
management team and industry knowledge are exceptional,” said Tom
Affolter, partner at VPC. “We believe this is an opportunistic time to
partner with Renovo to help provide loans in the underserved residential
rehab lending space and expand into new markets.”
Founded in 2011 by Kevin Werner, CEO of Renovo, and Granite Creek
Partners, a Chicago-based private equity firm, Renovo originates
short-term rehab loans and long-term landlord loans to creditworthy and
experienced residential rehab investors enabling them to reduce their
cost of capital as well as efficiently acquire and sell properties at
highly attractive rates of return. After building a robust
infrastructure and experienced management team over the last three
years, Renovo will use the funding to accelerate growth initiatives and
diversify its product offerings to better serve its customers.
Werner said, “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
“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,” added Mark Radzik, partner at Granite Creek. “With our
seasoned leadership and VPC’s expertise, we are confident Renovo is well
positioned to drive future growth.”
About Victory Park Capital
Victory Park Capital (VPC) is a privately held registered investment
advisor dedicated to alternative investing through the management of its
investment funds. As specialists in credit and private equity
investments, VPC focuses on middle market companies across a diversified
range of industries. Whether as a lender or a control investor, VPC
seeks to identify opportunities where it believes the potential for
reward outweighs the risks entailed. Founded in 2007, VPC is
headquartered in Chicago with additional resources in Los Angeles, New
York and San Francisco. For more information visit: http://www.victoryparkcapital.com.
About Renovo Financial
Renovo is a rapidly growing specialty finance business designed to
capitalize on the significant market opportunity in providing capital to
residential real estate investors. Founded in 2011, Chicago-based Renovo
is the premier provider of financial and strategic support for real
estate investors and property rehabbers who invest in and rehab
single-family and small multi-family properties. Renovo powers the
growth of its customers’ businesses and the communities they serve by
providing timely capital, responsive customer service, and assistance in
all phases of a project for its clients. Renovo’s clients are
experienced rehab investors and project managers, whose goals are to
redevelop properties to buy, fix, and flip for a short-term profit or
buy, fix and hold as a part of a long-term portfolio. Renovo’s
high-touch service, expert advice, and speed combined with flexible and
innovative loan products allow its borrowers to commit to and undertake
projects with confidence. Renovo typically funds small to mid-sized
projects up to $1 million. For more information visit: http://www.renovofinancial.com.
About Granite Creek Partners
Granite Creek Partners is a Chicago-based investment firm founded in
2005 that provides equity and debt capital to public and private
companies and innovative specialty finance for underserved industries.
Granite Creek pursues situations where a flexible investment approach
can deliver unique and highly customized solutions across an array of
investment types. With a focus on investing in fundamentally sound
U.S.-based middle market companies, Granite Creek looks to accelerate
the building of its portfolio companies through global expansion, add on
acquisitions and access to growth capital. For more information visit http://www.granitecreek.com.
RIVER EDGE, N.J.–(BUSINESS WIRE)–Nephros, Inc. (OTCBB:NEPH), a commercial stage medical device company
that develops and sells high performance liquid purification
ultrafilters and an on-line mid-dilution hemodiafiltration (“HDF”)
system for use with a hemodialysis machine for the treatment of patients
with end stage renal disease, announced today that it has entered into a
purchase agreement with Lincoln Park Capital Fund, LLC (“LPC”), a
Chicago-based institutional investor. Under the terms of the purchase
agreement, over a 36-month term, Nephros will have the right and the
sole discretion to sell to LPC up to $10 million worth of shares of
Nephros common stock in amounts as set forth in the agreement. Nephros
will control the timing and amount of any future investment and LPC will
be obligated to make purchases in accordance with the agreement.
“We are pleased to enter into this purchase agreement with LPC, an
existing investor in Nephros,” commented Daron Evans, CEO of Nephros.
“This commitment provides us with a vehicle for accessing capital as we
target profitability through growth in our filter business.
Additionally, we will be able to continue to work with our strategic
partners to treat patients with our HDF system, growing our experience
in the commercial setting.”
There are no upper limits to the price LPC may pay to purchase common
stock from Nephros and the purchase price of the shares related to any
future investments will be based on the prevailing market prices of the
Company’s shares immediately preceding the notice of sale to LPC. LPC
has agreed not to cause or engage in any manner whatsoever, any direct
or indirect short selling or hedging of the Company’s shares of common
stock. In consideration for entering into the agreement, Nephros has
issued shares of common stock to LPC as a commitment fee. The agreement
may be terminated by Nephros at any time, at its sole discretion,
without any monetary cost.
Under the terms of the purchase agreement and related registration
rights agreement, Nephros has agreed to file a registration statement
with the U.S. Securities and Exchange Commission (SEC) covering the sale
of the shares that may be issued to LPC.
A more detailed description of the agreement is set forth in the
Company’s Current Report on Form 8-K recently filed with the SEC which
the Company encourages be reviewed carefully.
This press release does not constitute an offer to sell or a
solicitation of an offer to buy the securities in this offering, nor
will there be any sale of these securities in any jurisdiction in which
such offer solicitation or sale are unlawful prior to registration or
qualification under securities laws of any such jurisdiction.
About Nephros, Inc.
Nephros is a commercial stage medical device company that develops and
sells high performance liquid purification filters, as well as a
hemodiafiltration system for the treatment of patients with end stage
kidney disease. Its filters, which it calls ultrafilters, are primarily
used in dialysis centers for the removal of biological contaminants from
water, bicarbonate concentrate and/or blood.
Nephros was founded in 1997 by healthcare professionals affiliated with
Columbia University Medical Center/New York-Presbyterian Hospital to
develop and commercialize a hemodiafiltration system, an alternative
method to hemodialysis. Since its founding, the company has extended its
filtration technologies to meet the demand for liquid purification in
other areas, in particular water purification.
For more information about Nephros and its products, please visit the
company’s website at www.nephros.com.
About Lincoln Park Capital (“LPC”)
LPC is an institutional investor headquartered in Chicago, Illinois.
LPC’s experienced professionals manage a portfolio of investments in
public and private entities. These investments are in a wide range of
companies and industries emphasizing life sciences, specialty financing,
energy and technology. LPC’s investments range from multiyear financial
commitments to fund growth to special situation financings to long-term
strategic capital offering companies certainty, flexibility and
consistency. For more information, visit www.lpcfunds.com.
This release contains forward-looking statements that are subject to
various risks and uncertainties. Such statements include statements
regarding Nephros’ plan to access capital under its agreement with
Lincoln Park, and other statements that are not historical facts,
including statements which may be accompanied by the words “intends,”
“may,” “will,” “plans,” “expects,” “anticipates,” “projects,”
“predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or
similar words. Actual results could differ materially from those
described in these forward-looking statements due to certain factors,
including Nephros’ ability to satisfy the conditions required to require
Lincoln Park to access capital under the parties’ agreement, changes in
business, economic and competitive conditions, regulatory reforms, and
foreign exchange rate fluctuations. These and other risks and
uncertainties are detailed in Nephros Inc.’s reports filed with the U.S.
Securities and Exchange Commission, including with respect to Nephros,
its Annual Report on Form 10-K for the year ended December 31, 2014.
Nephros, Inc.does not undertake any responsibility to update the
forward-looking statements in this release.