Flagship Credit sold to investment firm InterVest

Flagship Credit Acceptance, a leading non-prime auto-finance provider, has agreed to sell its operating assets and business operations to InterVest Capital Partners, an

investment firm specializing in niche credit strategies. The deal involves transferring Flagship’s business to a newly formed entity, Flagship Financial Group LLC, with Jim Landy set to take over as CEO upon completion of the transaction. The terms of the sale were not disclosed publicly, but the investment is expected to provide additional resources to support Flagship’s continued growth in auto loan originations. The company previously originated more than $16 billion in auto loans and employs over 500 people nationwide.​

InterVest Capital Partners, the acquirer, is a New York-based, SEC-registered investment adviser with a long track record in asset-based and specialty finance investments. This acquisition positions InterVest to expand its presence in the U.S. specialty finance sector, leveraging Flagship’s established dealer network and operating infrastructure.​

The specific terms and estimated value of the InterVest Capital Partners acquisition of Flagship Credit Acceptance have not been disclosed publicly. Both Flagship Credit Acceptance and InterVest Capital Partners declined to provide details on financial terms or valuation for the deal. The transaction will transfer Flagship’s operating assets to a new entity, Flagship Financial Group, with a new CEO, but the agreement’s financial specifics remain confidential at this time.

The sale of Flagship Credit Acceptance to InterVest Capital Partners is expected to have several effects on the auto finance industry, particularly in the non-prime lending segment:

Growth in Non-Prime Lending

• Flagship Credit Acceptance is a respected non-prime auto lender with a history of over $16 billion in loan originations, serving consumers who typically cannot qualify for traditional financing.​

• InterVest’s investment will likely enable Flagship to expand its originations and dealer network, making more non-prime auto loans available and providing additional financing options for less creditworthy consumers.​

Increased Industry Resources and Competition

• Infusion of capital from InterVest is expected to support Flagship’s operational growth and innovation, which may raise competitive pressure on other lenders targeting similar market segments.​

• Flagship will benefit from enhanced resources, potentially leading to better financing programs for auto dealers and increased availability of subprime funding.​

Sector Stability and Leadership Changes

• Flagship’s leadership transition to an experienced auto finance executive, Jim Landy, is anticipated to bring further sector stability and operational improvements in servicing auto loans.​

• This move may signal growing confidence in the auto loan market despite concerns over subprime lending quality.​

Overall, the acquisition is positioned as a positive development for the non-prime auto finance sector, suggesting opportunities for expanded lending capacity, improved dealer services, and ongoing innovation.​