NEW YORK — Flagship Credit Acceptance, a national indirect auto finance company that originates and services non-prime loans, was taken over this week and given new leadership by investment firm Perella Weinberg Partners.

To take majority ownership interest in Flagship, Perella Weinberg Partners committed to invest up to $50 million in the lender's platform.

Meanwhile, Perella Weinberg Partners also tapped auto finance industry veteran Michael Ritter and his management team to operate Flagship.

Perella Weinberg Partners explained its asset-based value strategy focuses on investing in assets that are believed to be at favorable valuations and which have contractual rights to cash flow. The firm's targets include physical assets such as railcars, aircrafts, vessels, energy royalty streams, as well as commercial real estate and financial assets such as auto loans, credit card receivables, franchise loans and other consumer assets.

The investment company also highlighted that Ritter is an experienced financial services executive with a 28-year history of forming, acquiring, operating and selling specialty finance companies.

Ritter was formerly the president and chief executive officer of an auto finance company that under his leadership grew to $500 million in annual originations in less than two years and that was successfully sold to a national bank.

During his career, Ritter also served as chief financial officer of Itochu International and as a senior executive of Copelco Financial Services Group.

Perella Weinberg Partners pointed out Flagship's senior management team collectively has more than 60 years of industry experience.

"This investment in Flagship is a continuation of our strategy to partner with seasoned management teams to build strong platforms in attractive segments," stated David Schiff, partner at Perella Weinberg Partners and portfolio manager of the asset-based value strategy.

"Recent consolidation in the auto finance sector presents an exciting opportunity to provide much-needed financing options to dealers and consumers," Schiff continued. "We are excited to work with Michael and his management team to grow a servicing platform that will help meet the demands of this $700 billion market."

Ritter also expressed his enthusiasm about Perella Weinberg Partners' decision to invest in Flagship.

"We are pleased to be teaming up with this proven investment team from Perella Weinberg Partners," Ritter insisted. "Working together, we will target markets where we have longstanding relationships with dealers and where recent market pullbacks have created lending opportunities.

"We anticipate a prudent growth plan, leveraging a broad network of dealer relationships, strong credit risk management capabilities and the capital resources now committed to the company," Ritter concluded.