Castlelake provides up to $155M in financing to Voyager Global Mobility
The investment community continues to push funds into the fleet sector.
On Tuesday, Castlelake, a global alternative investment manager with approximately 17 years of experience investing in asset-rich opportunities, announced that as part of its income investing strategy, it has reached an agreement to provide up to $155 million in fleet financing to Voyager Global Mobility (VGM), a leading provider to the smart mobility marketplace.
The financing is earmarked for the acquisition of more than 3,200 vehicles to rideshare, car-share and micro-mobility driver-subscribers in the United States and Latin America.
“We believe this financing will enable VGM to meaningfully address a supply shortage while providing drivers with more flexible solutions and a wider range of vehicles, including those that are handicap accessible,” said Armin Rothauser, who is partner of asset-backed direct lending at Castlelake.
“Through this transaction we are also pleased to obtain exposure to what we view as a compelling income investment opportunity within the fast-growing mobility market,” Rothauser continued in a news release.
VGM aims to address the ride-hailing vehicle supply gap by providing short-term subscriptions to drivers who either do not own a car or need a vehicle when their own car is out of service.
Currently, VGM operates a fleet of just under 10,000 vehicles across 20 cities in the U.S. and Mexico. VGM is aggressively expanding its business domestically and international through acquisition and internal growth.
“Castlelake’s financing expertise and ability to embrace complexity have been a tremendous asset throughout our relationship, and through this financing we are pleased to be able to nearly double our fleet of vehicles around the globe,” VGM chief financial officer Wayne Ackerman said in the news release.
“We look forward to taking our operations to the next level and to providing more drivers and our transportation software partners with professionally managed vehicles,” Ackerman added.
Castlelake has completed more than $3 billion of specialty finance investments since 2015, including a recent agreement to acquire up to $400 million of diversified equipment loan and lease receivables. Its specialty finance activity has also included acquiring or financing more than 3,500 commercial and industrial loans and over 5 million consumer receivable accounts.
Castlelake launched its asset-backed direct lending strategy in 2020 and has since provided nearly $3 billion in loans to borrowers.
EA Markets served as exclusive financial advisor and placement agent to VGM on the transaction.