GRAPEVINE, Texas -

Two former top executives at Exeter Finance secured a nine-figure amount of capital for their new venture — Praxis Finance.

Founded by auto finance veterans Daniel Parry and Steve Moses, Praxis on Friday finalized the closing of an investment partnership with affiliates of global alternative investment management firm Varde Partners, which has committed up to $100 million of capital to facilitate the purchase of auto finance receivables by the joint venture entity.

Parry and Moses founded Praxis last year with the purpose of serving dealers and consumers across the United States, with a specific focus on the non-prime market.  Based in Grapevine, Texas, Praxis will initially concentrate on acquiring portfolios in the Gulf Coast states, but ultimately intends to work with dealers and lenders across the United States.

Parry most recently served as co-founder and chief credit officer at Exeter from 2006 to 2014, a period when the finance company grew from a startup to a $2.5 billion portfolio. Prior to Exeter, Parry served as senior vice president at AmeriCredit.

Moses, formerly with Associates First Capital and Bank of America, as well as chief financial officer for Transplace and Taylor Logistics, served as Exeter's chief financial officer from 2008 through 2013 and led the development of Exeter's $2 billion asset-backed bond program.

Moses is serving as the president of Praxis while Parry is the chief executive officer.

“We are excited about the opportunity to partner with Varde as Praxis is uniquely positioned to bring both competitive pricing and high service levels to the market,” Moses said.

Parry added, “The auto finance market has changed significantly in the last few years. Having a good business model is no longer enough. 

Successful lenders must also be viewed as best in class operators by the capital markets and regulators,” Parry went on to say. “Accomplishing this takes the right financial partner, which is why we are very pleased to have the opportunity to work with Varde.”

Varde was represented by Kirkland & Ellis.  Praxis was represented by Katten Muchin Rosenman and received strategic consulting from Chris Hawke and Steve Gertz of Trinity Resource Partners.

“This transaction is consistent with our strategy of investing in specialty-finance companies with the potential for strong growth," said Chris Giles, senior managing director of Varde. 

“Praxis has extensive experience in the auto finance market, and we look forward to working with their team to successfully invest in the non-prime auto finance space,” Giles continued.