Boston, MA - March 31, 2009 – Velocity Financial Group, Inc., a leading provider of debt capital to venture backed businesses and equipment finance to middle market companies, announced the completion of a strategic combination with Core Business Credit, a provider of asset-based loans to middle market companies, and Oceana Media Finance, a provider of structured finance for film production, to form Core Financial Group. Velocity, Core and Oceana will continue to operate under their established brands and benefit from the strong capitalization and synergies resulting from the combination. Jan Haas, President and Co-founder of Velocity Financial Group, has been appointed President of Core Financial Group.
“This combination supports our mission to become a highly diversified commercial finance company dedicated to providing valuable, customized financing solutions to our clients that are typically out of the purview of traditional lenders,” stated Jan Haas, President of Core Financial Group. “Core and Oceana have phenomenal track records serving the unique financing needs of their clients, and we are excited to join forces with such experienced teams that share our focus in building great businesses,” added Haas.
Velocity, Oceana and Core are portfolio companies of American Capital, Ltd. (NASDAQ:ACAS), a publicly traded private equity and asset management firm. “American Capital invests in strong management teams to build industry leading enterprises within the financial services space,” said Bob Grunewald, Managing Director, Financial Services Group. “By bringing these firms together onto one platform, we have created a well-capitalized, diverse commercial finance company that can take advantage of the attractive investment opportunities in this market.”
ABOUT VELOCITY FINANCIAL GROUP
Velocity Financial Group, Inc. is a venture finance company dedicated to helping entrepreneurs by providing less dilutive, more flexible forms of capital. With offices in Boston and Silicon Valley, VFG's Ventures Group has built a broad portfolio consisting of technology, life sciences and clean energy companies. Clients range from pre-revenue companies with dedicated entrepreneurs to late stage, proven businesses seeking more efficient growth capital. For more information, please visit www.velocityfg.com.
ABOUT CORE FINANCIAL GROUP
Core Financial Group is a diversified commercial finance company formed through the strategic combination of Velocity Financial Group, Core Business Credit and Oceana Media Finance. Core Financial Group is headquartered in Dallas with offices in Atlanta, Boston, Chicago, Houston, Los Angeles and Silicon Valley. For more information about Core Financial Group, visit www.corefg.com.
ABOUT AMERICAN CAPITAL
American Capital is a publicly traded private equity firm and global asset manager. American Capital, both directly and through its asset management business, originates, underwrites and manages investments in middle market private equity, leveraged finance, real estate and structured products. Founded in 1986, American Capital has ten offices in the U.S., Europe and Asia. For further information, please refer to www.AmericanCapital.com.