FLOCK Finance Raises Additional Capital To Expand Portfolio Financing

ATLANTA, GA, October 11, 2018 – FLOCK Specialty Finance (“FLOCK”) announced today that it has closed on a new senior debt facility with MidCap Financial Services, LLC.  FLOCK is an Atlanta-based, alternative funding provider of capital and expertise for the purchase of both charged-off debt portfolios as well as for the financing of subprime consumer obligations.  The new funding represents a significant increase in senior debt capital for FLOCK, nearly doubling its deployment capacity.

“Our new relationship with MidCap takes our specialty finance company to a whole new level of growth, providing a wider menu of offerings in a broader array of complementary asset classes.  It ensures that we will have capital solutions aligned with our clients, supporting their future growth strategies,” said Michael Flock, Chairman and CEO of FLOCK Specialty Finance. “This financing provides three big benefits for clients.  First, it enables FLOCK to finance new asset classes including subprime performing auto loans, merchant cash advances, student loans, commercial lending and second lien mortgages.  Second, the new structure provides more flexibility by permitting FLOCK to use other capital sources to fund asset classes traditionally excluded from senior lines, such as charged-off high APR consumer debt portfolios.  Third, it enables FLOCK to offer different financing structures including on-balance sheet funding to complement our traditional off-balance sheet SPV solution. With these three new capabilities, FLOCK is in a much better position to participate in our clients’ capital decisions and support their growth plans.”

As consumer credit levels continue to rise steadily, the debt buying industry is poised for new growth.  FLOCK believes its new funding capacity positions it to help debt buyers grow more effectively and efficiently to serve this expanding market.  “We are very impressed by FLOCK’s unique combination of industry acumen and data analytics, and its commitment to partner with high-growth, high-integrity debt buyers to meet their funding needs,” said J.D. Gettmann, Managing Director at MidCap Financial Services, LLC.  “FLOCK’s motto is ‘More than a transaction’ and we’re pleased to partner with Michael and his team as they continue to transform the way these businesses access capital and benefit from value-added intelligence and industry expertise.”

About FLOCK Specialty Finance

FLOCK Specialty Finance is dedicated to alternative funding in a variety of specialty finance segments. FLOCK’s mission is to provide clients with capital and expertise for the purchase of both charged off debt portfolios as well as for the financing of subprime consumer obligations. FLOCK believes its funding is “More Than a Transaction”. FLOCK’s proprietary financing structure provides growth-minded clients with a competitive advantage in multiple asset classes. Founded in 2007, FLOCK is headquartered in Atlanta, GA.  www.flockfinance.com

About MidCap Financial

MidCap Financial is a middle market-focused, balance sheet lender that provides debt solutions to companies across all industries. The company’s subsidiary, MidCap Financial Services, LLC is headquartered in Bethesda, MD, with regional offices in Atlanta, Charlotte, Chicago, Los Angeles, New York and San Francisco. The company focuses on the debt needs of the middle market in five areas:

  • General Asset-Based: working capital loans collateralized by third-party accounts receivable, inventory, and other assets;
  • Leveraged Finance: cash flow based loans to Financial Sponsor backed companies;
  • Life Sciences: financing for venture backed and micro/small cap pharmaceutical, biotech, and medical device companies;
  • Lender Finance: loans provided across the consumer and commercial finance sectors; and
  • Real Estate: loans for the acquisition, refinance and recapitalization of healthcare and commercial real estate properties.

As of March 2018, MidCap Financial has over $16 billion of commitments under management. Since our founding in 2008, we have been working with management teams and sponsors to deliver thoughtful and cost effective debt solutions. Companies need a lender that understands their business and has the creativity and flexibility to provide financing solutions that are suited to their needs. At MidCap Financial, our years of experience, strong balance sheet, and flexibility make us the lender of choice for companies across all stages of growth and complexity.

MidCap Financial refers to MidCap FinCo Limited, a private limited company domiciled in Ireland, and its subsidiaries. MidCap Financial is managed by Apollo Capital Management, L.P., a subsidiary of Apollo Global Management, pursuant to an investment management agreement between Apollo Capital Management, L.P. and MidCap FinCo Limited. References to MidCap Financial prior to January 2015 are to its predecessor, MidCap Financial, LLC.