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  1. #1
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    Pearl Capital Selling??

    I have heard through 2 reliable inside sources that they are selling any day now, has anyone else heard the same?

    Do I need to stop submitting there?

    Does anyone know who the new owners are?

    I have a lot of deals there and currently syndicate as well, should I be worried about my renewals and RTR?

    Any insight would be most appreciated

  2. #2
    I heard they were using some investment bankers, but not sure who

  3. #3

    Pearl Capital Selling??

    I heard the same rumor and they will be announcing its next week according to a reliable source.

  4. #4

    Pearl Capital Selling??

    Stop sending your deals as a caution.

  5. #5
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    Pearl Capital Selling??

    I heard from reliable sources on the investment bank side and within the cash advance world that pearl is in talks for a $200 million buyout with the new buyer writing six and eight months deals with 14 point commissions. Industry is crazy right now!

  6. #6
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    I have been keeping an eye on this forum for some time...I work for an investment bank that has dealt with merchant cash advance debt/equity & buyout deals. I am not at liberty to disclose revenues, percentages owned etc of our firm and firms we have completed or are in the talks of completing transactions with; However, there has been a lot of talk regarding Pearl Capital Rivis Ventures of late. I have spoken with a senior member of our firm, who spoke off the record, that there is a likely chance that Pearl will be filing papers for an IPO similar to On Deck.

  7. #7
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    Quote Originally Posted by moneyplays View Post
    I have been keeping an eye on this forum for some time...I work for an investment bank that has dealt with merchant cash advance debt/equity & buyout deals. I am not at liberty to disclose revenues, percentages owned etc of our firm and firms we have completed or are in the talks of completing transactions with; However, there has been a lot of talk regarding Pearl Capital Rivis Ventures of late. I have spoken with a senior member of our firm, who spoke off the record, that there is a likely chance that Pearl will be filing papers for an IPO similar to On Deck.
    Pearl IPO? I don't deal with them as much as some others but I've gotten the impression they are kind of a C list player in the lending marketplace. If I shop a deal to them I already have approved the response is usually half or less of the other offer(s) and much more expensive. They are pigs when it comes to junk fees too. Can't see them launching an IPO...

  8. #8
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    Pearl Capital Selling??

    Pearl doesn't charge junk fees (aka PSF's)- they are a funder. I have done a handful of deals with them and their bank fees (which every funder has) are in line with every other major funder out there.

  9. #9
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    Quote Originally Posted by Achfund View Post
    Pearl doesn't charge junk fees (aka PSF's)- they are a funder. I have done a handful of deals with them and their bank fees (which every funder has) are in line with every other major funder out there.
    Pearl certainly does charge junk fees that most other funders don't charge (besides most of the other stackers) they typically add 7-10% in fees on top of 3 month 1.45 factor rate .

  10. #10
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    Pearl Capital Selling??

    Andy- that's factually incorrect. Clearly when someone is as big as a Pearl, an Everest, a Strategic and a Yellowstone etc. people are going to be envious of what they have. It's only natural for any large corporation. Everyone can find something they don't like about every funder out there.

  11. #11
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    Quote Originally Posted by Achfund View Post
    Clearly when someone is as big as a Pearl, an Everest, a Strategic and a Yellowstone etc. people are going to be envious of what they have.
    "Clearly". LOL.

    Pearl is an ethically bankrupt bottom feeder. There is nothing to envy about a company who's strategy consists of stacking and funding D-F paper.

  12. #12
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    Pearl Capital Selling??

    Hmm admin? My last post got deleted? What for? It wasn't speculation like the majority of this thread, that's the truth what I posted regarding many executives in this industry and their fellon pasts. There is a bias towards corporate sponsors on here like I have seen no where else. For $100 a month banner moral hazard can be sold! Maybe answer yourself why you flagged my last post?

  13. #13
    All I can say here is I never had any issues with Pearl. They have always been direct and upfront with me. Like many in the industry they do stack........but then again almost everyone like it or not, Also I will say that no one on this thread should be speaking badly about DF. I know the owner very very well and he has a TON of Integrity. "For $100 a month banner moral hazard can be sold!" just isn't even close to how DF operates.........

  14. #14
    Veteran Reputation points: 134971 Chambo's Avatar
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    Quote Originally Posted by Andy View Post
    Pearl certainly does charge junk fees that most other funders don't charge (besides most of the other stackers) they typically add 7-10% in fees on top of 3 month 1.45 factor rate .
    It's the 2-3 month 1.45's that are going to be the issue in any underwriting and due diligence.

    Everyone is so blindly greedy, thinking about all the IPO cash they are going to bring in, not realizing the consequences of quarterly reporting and transparency. the REAL default rates, the REAL criteria for funding, etc, will all come out (unless there are bogus books being submitted,, but that is a whole other issue)

    All this is really going to do is bring more scrutiny to our industry and all these fly by night brokers and funders had better start dusting off their resumes. The SEC won't put up with 50-60% of the nonsense that goes on with some places. Then there's the whole Gov't regulation, backdoored through the SEC to worry about. I understand NAMAA is meeting very soon. Hopefully they are paying attention and ready to act

  15. #15
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    Quote Originally Posted by Chambo View Post
    The SEC won't put up with 50-60% of the nonsense that goes on with some places.
    (cough) illegal fax marketing (cough) (cough) ...

  16. #16
    Senior Member Reputation points: 2019 Lenders.Marketing's Avatar
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    Fax broadcasting was deemed to be illegal in the past since you were costing businesses money (paper and toner) but nobody seems to be enforcing it. Now with all the Electronic Fax accounts it is basically the equivalent of sending an email to info@.
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    info@lendersmarketing.com
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  17. #17
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    Quote Originally Posted by Achfund View Post
    Andy- that's factually incorrect. Clearly when someone is as big as a Pearl, an Everest, a Strategic and a Yellowstone etc. people are going to be envious of what they have. It's only natural for any large corporation. Everyone can find something they don't like about every funder out there.
    Lol its not factually incorrect. It is a fact. anyone who has been in this business for a few years knows it. every company you mentioned with the exception of strategic is a stacker. And they all charge a bunch of junk fees. There are other stackers that do not charge as much in junk fees. And NONE of the A paper, first position companies charge anywhere near to those type of fees. On deck, 2.5% in fees. MCC, Snap, GRP, etc 300 in admin fees, not 7-10% of the advance amount.

    I am not bad mouthing any of those companies that you have mentioned. They fill a need. I have worked with some of the for years. I am merely pointing out that Pearl, in addition to 3 month 1.45 , they also charge 7-10% in fees that are deducted from the funding amount, bringing the effective interest rate to 200+%. And I do not think it would be in pearls best interest to go public and advertise that they charge those kind of rates

  18. #18
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    Thread closed. Let's wait and see what happens.

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