Wednesday, February 26, 2014

Acrecent Financial Announces Equity Raise and Latin America & Caribbean Expansion

Acrecent Financial Corporation announced the completion of a capital raising transaction to expand its footprint in Central America, Dominican Republic, Colombia and Mexico. The lead investor was Darby Private Equity, the private equity arm of Franklin Templeton Investments, with Hofmockel Investments, LLC co-investing. Darby invested through its Darby ProBanco Fund II that specializes in the financial sector in Latin America. Muoz Holdings, Inc. maintained its investment in the company. Transaction terms were not disclosed.

Acrecent is a commercial finance company dedicated to providing businesses the capital needed to acquire equipment and information technology for which few financing alternatives exist in the region. Acrecent tailors loan and lease facilities and offers significant structuring flexibility to meet customer needs and support business growth. The additional capital raised allows Acrecent to continue the regional expansion began after the company’s founding in 2003.

“Acrecent has consistently made financing available to hundreds of businesses in multiple industries, simultaneously solving customers’ funding needs while building a high quality portfolio of leases and loans," said James Connor, CEO and co-founder. "I am pleased to bring Darby and Hofmockel Investments on board as we widen geographic coverage; they add not only financial strength but also strategic and regional market intelligence. This transaction marks the beginning of a multifaceted expansion that will result in medium-size businesses, in particular, having greater access to the capital that fuels growth, creates jobs and supports local economies. We are also pleased that First Bank of Puerto Rico and Banco de Desarollo Ecónomico para Puerto Rico have expanded their relationship with us enhancing our ability to serve the Puerto Rico business community.

Roberto Velarde, Darby’s Managing Director for Latin America Private Equity, commented: “This transaction represents another example of Darby’s experience and capabilities in supporting middle-market companies with long-term growth capital in the region. Darby looks forward to working actively with the company to implement its strategic plans.

Jim Hofmockel, founder of Hofmockel Investments added: “We are pleased to be partnering with the outstanding management team and strong platform Acrecent has built over the years and are excited about the many growth opportunities in the region.”

Darby Private Equity was founded in 1994 by The Honorable Nicholas F. Brady, who served as U.S. Secretary of the Treasury between 1988 and 1993. In 2003, Darby became a fully owned subsidiary of Franklin Resources, Inc., a global investment management organization operating as Franklin Templeton Investments; a company with more than 60 years of investment experience and over $857 billion in assets under management as of January 31, 2014.

Hofmockel Investments, LLC was founded in 2007 by Jim Hofmockel after 20 years of experience in Private Equity, Investment Banking and Consulting in New York and Chicago.


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