Levine Leichtman Capital Partners (LLCP) has exited its investment in Consumer Portfolio Services (CPSS) realizing a 27 percent IRR and 2.3x return, according to a statement.
The exit follows news in September and November of last year that Levine was cutting its positions in the company. Levine was invested in CPSS through its Fund II a 1998 vintage, and Fund IV a 2008 vintage, according to its website.
A spokesperson for LLCP was unavailable for comment at press time.
CPSS is an independent specialty finance company that provides subprime credit financing for automobiles. The company offers installment financing secured by late model used vehicles and funds the loan through securitization. The company’s portfolio amounts to some $1.3 billion in loans. CPSS is based in California with branches in Nevada, Virginia, Florida, and Illinois.
“We are pleased to provide a very attractive return to LLCP's investors through an exit that was facilitated by CPSS’ access to the capital markets,” LLCP CEO Lauren Leichtman said in a statement. CPSS trades on the NASDAQ under the symbol CPSS.
LLCP is currently investing out of its fifth fund, which closed on $1.65 billion in March according to Private Equity International’s research and analytics division. Known investors in Fund V include the Florida State Board of Administration, which committed $200 million to the fund in 2013. Earlier this month LLCP made its fourth investment from Fund V, buying franchisor FastSigns from Atlanta-based Roark Capital for an undisclosed sum, PEI reported at the time.