Lightyear and Ontario Teachers’ Acquisition of Lendmark

Davis Polk & Wardwell LLP and Stephens Inc. are serving as advisors to Lightyear and Ontario Teachers’ and Torys LLP is serving as an advisor to Ontario Teachers’. Skadden, Arps, Slate, Meagher & Flom LLP and Goldman Sachs & Co. (as lead financial advisor), Barclays Capital Inc., Citigroup Global Markets Inc. and RBC Capital Markets, LLC are serving as advisors to Lendmark and Blackstone.

Investment funds affiliated with Lightyear Capital LLC, a New York-based private equity firm focused on financial services, and the Ontario Teachers’ Pension Plan agreed to acquire Lendmark Financial Services, LLC from private equity funds managed by The Blackstone Group L.P., one of the world’s leading investment firms.

The senior management team of Lendmark will remain in leadership positions and remain shareholders as part of this transaction.

Financial terms were not disclosed and the transaction is anticipated to close in the second half of 2019, subject to regulatory approvals and other closing conditions.

Founded in 1996, Lendmark is a leading community-oriented consumer finance platform with 320 branches across 19 states. The Company provides both direct consumer installment loans (unsecured, personal secured and direct auto) and sales finance (retail) products to borrowers. With robust underwriting processes and compliance standards, Lendmark offers a personalized, high-touch service model and value proposition to consumers who are underserved by traditional lenders such as banks and credit unions.

Founded in 2000, Lightyear is a financial services-focused private equity firm based in New York.

The Ontario Teachers’ Pension Plan is Canada’s largest single-profession pension plan, with $191.1 billion in net assets at December 31, 2018.

The New York- based Skadden team includes: Financial Institutions partner David Ingles (Picture) and associates Patrick Lewis, Tim Gafney and Ji-won Lim; M&A partner Allison Schneirov; Tax partners Victor Hollender and Alec Jarvis; Executive Compensation and Benefits partner Regina Olshan and counsel Shalom Huber; and Capital Markets partner Andrew Faulkner.

Involved fees earner: Andrew Faulkner – Skadden Arps Slate Meager & Flom; Tim Gaffney – Skadden Arps Slate Meager & Flom; Victor Hollender – Skadden Arps Slate Meager & Flom; Shalom Huber – Skadden Arps Slate Meager & Flom; David Ingles – Skadden Arps Slate Meager & Flom; Alec Jarvis – Skadden Arps Slate Meager & Flom; Patrick Lewis – Skadden Arps Slate Meager & Flom; Ji-won Lim – Skadden Arps Slate Meager & Flom; Regina Olshan – Skadden Arps Slate Meager & Flom; Allison Schneirov – Skadden Arps Slate Meager & Flom;

Law Firms: Skadden Arps Slate Meager & Flom;

Clients: Blackstone Group L.P.; Lendmark Financial Services;

Author: Ambrogio Visconti