FORT WORTH, Texas -

With some consumers benefitting from refinancing their retail installment contract, the investment world is seeing an opportunity, too.

On Monday, OpenRoad Lending and Clarion Capital Partners announced that the New York-based private equity firm that focuses on making equity investments in lower middle market growth companies has completed a strategic investment in OpenRoad, a fast-growing direct-to-consumer auto finance company.

According to a news release, OpenRoad chief executive and co-founder Chris Goodman will retain a “meaningful” ownership stake and continue his role as CEO.

The terms of the transaction were not disclosed.

Founded in 2009 by the same executives who pioneered RoadLoans, OpenRoad partners with banks, credit unions and institutional investors to enable consumers to refinance their existing installment contract, lower their interest rates and achieve significant monthly savings.

In addition, OpenRoad offers value-add vehicle protection products such as GAP, vehicle service contracts and paintless dent repair.

Through its partnership with Clarion, OpenRoad said it plans to capitalize on its market position and explore additional business lines, such as financing for vehicle purchases, lease buyouts, car insurance and other consumer verticals.

OpenRoad added that will also leverage this investment to broaden its marketing channels and grow both organically and through acquisition.

“Over the past 12 years, we’ve built a tremendous operation known for saving customers money and delivering a convenient, modern online experience,” Goodman said in the news release. “We expect demand for auto refinancing to continue to rise as smart consumers look for ways to lower their expenses. That, combined with accelerating adoption of digital lending, will lead to significant growth for OpenRoad.

“We are excited to partner with Clarion and benefit from their extraordinary expertise, resources and network to grow our business, while delivering the best financing experience in the market,” he continued.

Clarion managing director Matthew Feldman added these perspectives.

“OpenRoad’s exceptional customer value proposition, proven operational foundation, and commitment to meeting the needs of its lending partners is what attracted us to the business and what provides real opportunity for expansion,” Feldman said in the news release. “We are excited to partner with Chris and the management team to enhance their offering within the core refinancing product and beyond.

“Both of our teams share a commitment to excellence, integrity and collaborative culture. We believe we have a great formula for success,” he went on to say.

On the transaction, Clarion received legal advice from Akerman LLP and Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, PC.

Financing for the transaction was provided by funds managed by Madison Capital Funding and PennantPark Investment Advisers, LLC. Colonnade Capital Partners served as exclusive financial advisor to OpenRoad. Munsch Hardt Kopf & Harr, PC served as legal counsel to OpenRoad.