Mezzanine Management has provided EUR 23.3 million of mezzanine finance to support the growth of Mogo Finance (Mogo), a non-bank car financing provider operating in the Baltics and Georgia.
The deal was funded through Accession Mezzanine Capital III, Mezzanine Management’s third investment vehicle. The fund is backed by reputable institutional investors, including European Bank for Reconstruction and Development and European Investment Fund.
The funds in this deal are earmarked for developing Mogo’s operations in other countries within the Central and Eastern European region. Mogo is currently the market leader in the Baltics, with a loan portfolio in excess of EUR 38 million comprising 20 000 cars and employing more than 200 people. The firm presently has operations in Latvia, Lithuania, Estonia and Georgia and plans to work with Mezzanine Management to expand the group into other countries. The goal is to make Mogo the leading non-bank car financing firm in the wider Central and Eastern European region over the next few years.
“We look forward to working with Accession Mezzanine Capital III to continue to grow our business. The investment of such a global and reputable investment fund is a strong vote of confidence for Mogo, its shareholders, employees and current strategy. Our new partnership lays down solid foundations for further expansion of the group, and reinforces our belief in our business strategy,” said Jēkabs Endziņš, board member of Mogo.
Franz Hörhager, Founder Partner of Mezzanine Management, commented: “We constantly map the market and have seen the Baltics become more attractive and thus active in recent years. The development of the economies there has made the region more interesting for us, evidenced by our signing two deals there in four months. The latest, in Mogo, is in a sector we know well, having backed Masterlease in Poland previously. We believe our experience in this segment combined with the strength of Mogo’s management team means we can work well together in achieving the business’s growth ambitions.”
Mezzanine Management was advised by DELOITTE as well as law firms NORTON ROSE FULBRIGHT, TARK GRUNTE SUTKIENE, ARENDT & MEDERNACH and DLA PIPER.
Mogo was advised by PORTA FINANCE and law firm EVERSHEDS BITĀNS.
Mezzanine Management is an exclusive advisor to the Accession Mezzanine Capital group of funds, whose total commitments exceeded half a billion euros. The company has been operating in Central and Eastern Europe since 2001 through its offices in Vienna, Warsaw, Bucharest, Budapest and Kiev. The funds’ investment portfolio is diverse and includes over 40 transactions over 10 countries in Central and Eastern Europe. The fund is backed by reputable institutional investors, including European Bank for Reconstruction and Development and European Investment Fund.
Mogo Finance is one of the fastest-growing non-bank car financing companies in the Baltics and Georgia. It offers its clients standard financial leasing as well as loans secured with a vehicle owned by the client. The company has 28 branches in 26 cities in four countries. The group co-operates with more than 500 car dealerships and employs more than 200 people.
Mogo’s subsidiary in Latvia is 100% owned by the parent company Mogo Finance S.A. In 2014, JSC Mogo issued 20,000 bonds with the total value of EUR 20 million on the debt securities’ list of the Baltic NASDAQ exchange. The deal concluded with Mezzanine Management in June 2015 was aimed to attract additional financing for the development of the company at the group level.