J.C. Flowers To Sell Island Finance To VRM Penzini Capital In Major Puerto Rico Acquisition

J.C. Flowers & Co. has agreed to sell Island Finance, Puerto Rico’s largest non-bank consumer financial institution, to VRM Penzini Capital in a major acquisition deal expected to close in December 2025.​

Transaction Overview

• Island Finance, established in 1959, serves more Puerto Rican families than any other non-bank lender and operates 47 branches with nearly 500 employees.​

• J.C. Flowers guided Island Finance through several strategic moves, including its separation from Grupo Santander and the launch of a significant asset-backed securities (ABS) transaction made up of Puerto Rican consumer loans.​

• Financial terms of the sale have not been disclosed, but the transaction is being described as one of Puerto Rico’s most notable financial services deals this year.​

Strategic Goals for New Ownership

• VRM Penzini Capital, a Puerto Rico–based private investment firm, regards the acquisition as a long-term commitment to strengthening the island’s financial infrastructure.​

• The firm’s leadership intends to work with Island Finance’s management team to expand access to consumer credit, accelerate innovation, and enhance customer experience for Puerto Rican families.​

• By building on Island Finance’s legacy, VRM Penzini Capital seeks to drive further economic growth and community development throughout Puerto Rico.​

Statements from Company Leaders

• J.C. Flowers expressed pride in assisting Island Finance with pivotal transformations and reaffirmed the company’s mission of community service and growth.​

• VRM Penzini Capital’s leadership called Island Finance “an iconic Puerto Rican institution” and emphasized the importance of continuing to provide financial support for local families while expanding services.​

This acquisition reflects a significant development in Puerto Rico’s consumer finance landscape, with promises of continued growth and innovation for the local market.​

J.C. Flowers & Co. chose to sell Island Finance to VRM Penzini Capital to enable further growth, innovation, and local market competitiveness for Island Finance in Puerto Rico.​

Strategic Reasons for the Sale

• Expansion of Consumer Credit: VRM Penzini Capital aims to broaden Island Finance’s reach and improve access to consumer loans and financial services for Puerto Rican families, supporting community development.​

• Strengthening Financial Infrastructure: The new owners are committed to bolstering Puerto Rico’s non-bank financial sector, providing resources and expertise to enhance the company’s operational capacity.​

• Accelerating Innovation: VRM Penzini Capital intends to invest in digital transformation, product innovation, and new customer service platforms at Island Finance.​

• Long-term Local Commitment: As a Puerto Rico–based investor, VRM Penzini Capital offers local knowledge and long-term engagement, ensuring that Island Finance’s growth is aligned with the needs of the local market.​

J.C. Flowers’ Perspective

• After overseeing strategic initiatives such as Island Finance’s ABS transaction and independence from Santander, J.C. Flowers seeks to pass ownership to a party focused on local economic growth and community service.​

• The sale allows J.C. Flowers to realize value from its investment while supporting Island Finance’s continued relevance and success under new leadership.​

The decision reflects a shared commitment between both parties to drive positive changes and local impact in Puerto Rico’s consumer finance sector.​