TowerBrook Capital Partners has agreed to purchase loans valued at $180 million originated by online lender ApplePie Capital over the next two years.
ApplePie focuses on providing debt facilities to US companies looking to expand their franchises. Notable companies it has worked with include Jimmy John’s Sandwiches, 7-Eleven and Wendy’s. It works with brands looking to refinance existing debt, open new locations or acquire existing units and provides loans starting at $100,000, according to its website.
The firm manages a marketplace lending model enabling access to both institutional and retail investors to provide capital directly to franchises. Since the beginning of 2015, the firm has provided $50 million in credit.
Funds will come from the TowerBrook Structured Opportunities Fund, a vehicle that finances both structured equity and debt deals. The fund reached a final close at the end of last year, raising $800 million according to PDI data. Additionally, SunTrust Bank will provide a revolving credit facility.
On top of the funding from TowerBrook, ApplePie also secured $16.5 million in a Series B round of funding, co-led by venture capital firms QED Investors and Fifth Third Capital.
Denise Thomas, chief executive of ApplePie, said: “The investments will allow us to scale and dramatically advance our mission of transforming franchise finance, while providing TowerBrook with unprecedented access to high-quality credits in proven small businesses.”
Tim Morris joins ApplePie from GE Capital as a strategic advisor. Previously, he was chief risk officer at the franchise financing arm of the firm, a position he has held since 2010.