Chesswood Group Forms Joint Venture with Wafra to Invest in Equipment Finance
Chesswood Group forms joint venture with Wafra to invest in equipment finance, aiming to meet market demand and evaluate new opportunities in commercial finance space. Wafra Funds will own up to 95% of equity.
Troy D. Hanson
October 31, 2023
Chesswood Group, a subsidiary of Chesswood Group, has announced a joint venture with certain funds managed by alternative investment firm Wafra. The main purpose of this venture is to invest in equipment finance leases and loans originated by Pawnee Leasing. The goal is to target up to 1 billion Canadian dollars ($723.2 million) in total acquisitions.
The primary objective of this joint venture is to support Chesswood's subsidiaries in growing their originations to meet market demand. Additionally, it aims to evaluate new opportunities that leverage the company's infrastructure and experience in the commercial finance space.
Equity will be contributed by both Wafra Funds and Pawnee to the joint venture. Wafra Funds will own up to 95% of the equity, while Chesswood and its operating subsidiaries will service the assets.
As part of the formation of the joint venture, Chesswood will issue warrants to Wafra Funds. These warrants will allow Wafra Funds to purchase approximately 2.1 million common shares for an exercise price of C$10 million.