Alternative asset manager White Oak has acquired Finacity, which works in trade finance and working capital solutions for global companies, according to a press release.
The acquisition will bolster White Oak’s drive into the market for asset-based working capital solutions, the release stated.
Finacity works with hundreds of billions of dollars in trade finance receivables annually and facilitates non-bank transactions all around the world, according to the release.
“Finacity is a market leader, and there are significant synergies between their work and the work we are already doing at White Oak,” said White Oak Global Advisors CEO Andre Hakkak in the release. “This acquisition further demonstrates White Oak’s commitment to being a leading global player in asset-backed capital solutions which is integral to the functioning of the global economy. In particular, Finacity’s experience in making securitization of accounts receivable and consumer assets less complex and more cost-effective will provide significant advantage to our clients.”
In addition, White Oak will be going deeper into the market for asset-based working capital solutions, and the company will work with Finacity on various collaborations, such as White Oak deploying institutional capital with Finacity, the release stated.
White Oak offers numerous lending products, including small- to medium-sized business (SMB) business lending, commercial finance, equipment lending, structured finance and more. In July, the company invested in Gupshup, a business-to-consumer (B2C) text messaging company.
Other investors included Fidelity Management and Research Company, Tiger Global, Think Investments, Malabar Investments and Harbor Spring Capital, as well as accounts managed by Neuberger Berman Investment Advisers and Neeraj Arora, along with others.
Gupshup raised $340 million in 2021 alone as of late July. The funding will go toward accelerating the group’s vision as it continues along its path of looking into mergers and acquisition opportunities and buying more shares.