Tomahawk, WI 07/30/2014 (Basicsmedia) – Consumer Portfolio Services, Inc. (NASDAQ:CPSS) has delivered well, allowing Levine Leichtman Capital Partners (LLCP) to make a successful exit out of their investment in the company. The Partner firm has specified that they have realized 27% IRR and 2.3 times money from their investment in Consumer Portfolio Services. The positive reflection from LLCP drove the company’s share by over 10% yesterday.
Attractive Exit For LLCP
As per the released press release, LLCP was appreciative of the work of the company as they enjoyed their partnership with CPSS’ management headed by Chairman and CEO Charles E. Bradley, Jr. LLCP has been with the company for more than six years, and thus, the firm stated that CPSS delivered remarkable growth in contracts bought and also managed receivable portfolio. Overall, LLCP is satisfied with the growth journey shared by CPSS, according to LLCP CEO, Lauren Leichtman. He added that they are pleased with CPSS’ role to facilitate their exit through wider access to the capital markets, and thus, helping to give an attractive return to LLCP’s investors.
Helping Consumers Affordability
CPSS works as an independent finance company, which extends indirect automobile funding to individuals, who have low incomes, or have either limited credit history or past credit issues. With respect to functioning, CPSS buys retail instalment sales contracts from automobile dealership franchisees primarily that are secured against late model used vehicles and to some extent by new vehicles. The company finances these contract purchases on a long duration basis, mainly via the securitization markets. Also, the company services these contracts for the entire length of their duration. Thus, in this way, Consumer Portfolio Services, Inc. (NASDAQ:CPSS) reaches out to those customers, who otherwise could not afford to obtain finances from conventional modes like credit unions, commercial banks and the captive finance companies. Indirectly, CPSS also helps dealers to boost their sales by helping their customers.