Northwest FCU Buys National Business Lender
The $2.6 billion Northwest Federal Credit Union said it has acquired substantially all of the assets of a business finance group that specializes in government-guaranteed loans.
The Herndon, Va.-based cooperative has bought Park Place Equity LLC in Scottsdale, Ariz., an independent nationwide business lender specializing in the origination of loans under the SBA’s 7(a) and 504 lending programs along with the U.S. Department of Agriculture’s business and industrial lending program.
Park Place will continue to do business under its Park Place Equity brand as a division of Northwest Federal, according to both entities.
The value of the deal was not disclosed.
Over the past two years, Northwest Federal has been developing a government lending platform to serve the needs of its business members, said Chris McDonald, president/CEO of the credit union.
By adding Park Place and the company’s expertise to its existing platform, Northwest Federal will immediately gain a nationally known brand and substantial, additional experience in this lending field, he added.
“We consider the additional leverage provided by government guaranteed loans to represent one of the most compelling options for credit unions to expand member business lending,” said McDonald.
Jason Bengert and Chris Balestrino, co-CEOs of Park Place Equity, said they are excited about the prospect of joining Northwest Federal. According to Bengert, Park Place Equity was started nearly seven years ago with a goal of facilitating business owners’ access to capital and funding to start and grow their businesses.
“We are proud to have been able to accomplish this goal and to have grown Park Place to the point of providing nearly $123 million in funding to businesses in our most recent year of operations,” said Bengert.
He added, “We feel joining Northwest Federal is a natural fit, as both organizations are fully committed to bettering the financial lives of our members.”
Kilpatrick Townsend & Stockton LLP served as outside legal counsel to Northwest Federal and Sandler O'Neill + Partners L.P. served as financial adviser to the credit union.
Becker Peters PLLC served as outside legal counsel to Park Place Equity and CrossGate Capital Funding LLC provided advisory services.