Wingspire Capital Provides $40 Million Senior Secured Financing to XL Funding

By Wingspire Capital Holdings


Wingspire Capital Holdings has provided a $40 million commitment to XL Funding, LLC, a wholly-owned subsidiary of the XLerate Group.

XL Funding provides floorplan loans to auto dealers in more than a dozen markets, and will use the funding to refinance a previous bank loan and extend capital to more small and medium-sized dealers in populous states including California, Texas and Florida.

Wingspire was attracted to XL Funding’s position of strength as consumers pursue affordable pre-owned automobiles amid the uncertain economy and a desire for “private” transportation during the coronavirus pandemic.

They also admired the way that XL Funding’s leadership team took strategic and proactive steps during the pandemic, such as assisting dealership customers in navigating government programs such as the Paycheck Protection Program and other Small Business Administration loans.

“Wingspire is pleased to support an experienced leadership team with a successful track record of profitably growing portfolios while also following sound financial reporting policies and controls,” said John Rosin, President and COO of Wingspire Capital.

Wingspire’s financial support allows XL Funding to deploy more capital to dealers who are seeing strong retail demand as people begin to return to offices, job sites, schools, retailers and other places. XL Funding, which is backed by Huron Capital Partners in Detroit, also benefits from synergistic ties to the growing auction footprint of the XLerate Group.

“This financing will enable our business to expand strategically into new markets in a thoughtful and purposeful way while also letting us remain nimble and responsive to the needs of our existing customers,” said Joel Garcia, President of XL Funding.

Capstone Headwaters advised XL Funding on the transaction.

ABOUT WINGSPIRE CAPITAL HOLDINGS

Wingspire Capital Holdings focuses on the upper tier of the senior secured asset-based lending (ABL) and ABL stretch market by providing revolving credit lines and term loans ranging from $20 to $200 million. The Atlanta-based company serves mid-sized public and private businesses across numerous industries including manufacturing, distribution, retail, logistics, automotive, energy, consumer products, hospitality, lender finance and business services. Wingspire’s loans are secured by assets such as accounts receivable, inventory, equipment, real estate and intellectual property. Wingspire is a portfolio company of Owl Rock Capital Corporation (NYSE: ORCC).  ORCC is externally managed by Owl Rock Capital Advisors LLC, an SEC-registered investment adviser. Owl Rock Capital Advisors LLC, together with its affiliates, is a New York based direct lending platform with approximately $17.3 billion of assets under management as of March 31, 2020. For more information about Wingspire, please visit wingspirecapital.com.

ABOUT XL FUNDING LLC

XL Funding LLC is a leading dealer flooring source for small and medium-sized dealerships in more than a dozen markets, including markets in California, Texas, Arizona and Florida.  Backed by Huron Capital Partners, XL Funding is a sister company of XLerate Group, which owns and operates auto auctions in 11 states.  For more information, please visit  xlfunding.com and Xlerategroup.com.