Flock Advisors, a financing group to middle market debt buyers and collection agencies, has raised a new round of capital with a group of institutional investors that will expand the company's ability to offer financing solutions for debt portfolio purchases, refinancing and strategic balance sheet reengineering.
As a result, the company has rebranded as Flock Specialty Finance, and will expand its staff in the months ahead.
The company did not disclose the exact dollar amount but stated it's in the "tens of millions." The new capital structure gives founder Michael R. Flock and his team new capabilities for deeper lending relationships typically offered by specialty finance firms. Middle market debt buyers and collection businesses will now have a financing source that will help them navigate the "turbulent changes affecting the industry," according to a news release.
When industry complexity and government supervision increase, traditional funding sources are no longer adequate to maintain a companys competitive position, much less grow, said Flock, who also serves as the company's chairman and CEO. A specialty finance company provides not only capital, but also the expertise to ensure that the financing solution meets the financial and strategic needs of a company. We look forward to developing trusted working relationships with debt buyers to grow their business and maximize their profits and performance in a wide variety of asset classes.
According to Donald C. Hilbert, chief financial officer, Our specialty finance company closed on institutional funding with the potential purchasing power of $350 million over the next three years. This will allow Flock [Specialty Finance] to fund larger deals, invest in more asset classes and provide more flexible funding terms.