OpenRoad Lending, a Fort Worth, TX-based direct-to-consumer auto finance company, received an investment from Clarion Capital Partners.
Financing for the transaction was provided by funds managed by Madison Capital Funding and PennantPark Investment Advisers, LLC. The amount of the deal was not disclosed.
Founded in 2009 by Chris Goodman, who will retain a meaningful ownership stake and continue his role as CEO, OpenRoad partners with banks, credit unions and institutional investors to enable consumers to refinance their existing auto loans, lower their interest rates and achieve significant monthly savings. In addition, the company offers vehicle protection products such as GAP, vehicle service contracts and paintless dent repair. The company uses sales and fulfillment processes, strategic marketing and a proprietary software platform to provide its lending partners with direct loans that meet each lender’s underwriting criteria.
OpenRoad currently focuses all its efforts on auto refinancing. Through its partnership with Clarion, the company plans to explore additional business lines, such as lending for auto purchases, lease buyouts, car insurance and other consumer verticals. OpenRoad will also leverage this investment to broaden its marketing channels and grow both organically and through acquisition.
Since its inception in 2009, the companyhas originated more than $3 billion in auto loan receivables.