Financial services

Helping businesses evolve for the future

Macquarie helped transform ECN Capital from a commercial lender to a premier service provider to the consumer finance industry.

Sector	Financial services
Sub-sector	Consumer finance
Location	Canada

Opportunity

ECN was established as part of the reorganization of Element Financial Corporation, emerging as a leading North American commercial finance company with approximately $C6 billion in assets.

Shortly following the split, ECN initiated an 18-month capital redeployment period to harvest existing commercial finance businesses and redeploy the capital into businesses generating higher returns for its shareholders.

Macquarie Capital partnered with ECN to help identify the right opportunities and execute on a strategy to position ECN for long-term success.

"We helped ECN look beyond its traditional lines of business to identify acquisition targets aligned with a new strategy."

Approach

The capital deployment plan began when ECN approached Macquarie to advise on the divestment of its US Commercial and Vendor Finance business.

In addition to advising on five successful business divestitures, we helped ECN look beyond its traditional lines of business to identify acquisition targets aligned with a new strategy.

Within 18 months, Macquarie advised on seven transactions including the acquisitions of Service Finance Company and strategic investment in the Kessler Group, transforming ECN from a commercial equipment finance company to a leading provider of prime credit portfolios.

Infographic depicting the 18 month transformation of ECN

Outcome

Our long-term partnership with ECN uniquely positioned us to deliver solutions tailored specifically to their needs.

By taking on an owner’s perspective, our expert advisory teams assisted in securing the right opportunities to help ECN prepare for a more successful future.

Today, ECN Capital originates, manages and advises on prime consumer credit portfolios in credit cards, home improvement finance and manufactured housing finance.

With a newly diversified business mix including 3 business lines and over $US28 billion of managed and advised credit portfolios, ECN partners with over 90 financial institutions ranging from some of the largest US banks and credit unions to community banks and local institutions.