PeopleFirst.com Closes $36.5 Million in Venture Capital; Equity Infusion to Expand Business
14 March 2000
PeopleFirst.com Closes $36.5 Million in Venture Capital; Equity Infusion to Expand Business
SAN DIEGO--March 14, 2000--Online auto loan leader PeopleFirst.com (www.peoplefirst.com) announced the completion of a $36.5 million investment led by Madison Dearborn Partners.Other new investors included Morgan Stanley Dean Witter Venture Partners, Richland Ventures, American Express and Mail Boxes Etc. These firms joined existing investors, JP Morgan Capital Corp., Moore Capital and Chrysalis Ventures to complete this round of financing.
The funds will be used for working capital and general operating needs of the company and to fund loan growth.
"We are excited to expand our investment relationships with this financing and to strengthen ties with some of our business partners," said Gary J. Miller, CEO and co-founder of PeopleFirst.com. "The investment group brings a host of resources and experience to our business."
"Madison Dearborn Partners is enthusiastic about entering into this transaction with PeopleFirst.com, a leading Internet-based auto finance company. Through strong management and an innovative business model, PeopleFirst.com has established itself as the leader in the rapidly growing online auto finance industry," said Timothy Hurd, MDP's Director. "This investment is consistent with MDP's objective of investing in companies that have established themselves as the first mover within their respective vertical of the rapidly growing efinance sector. Furthermore, MDP's investment in PeopleFirst.com demonstrates our strategic commitment to the evolving financial services industry, and is consistent with our goal to grow this sector of our business."
About PeopleFirst.com
Founded in 1995, PeopleFirst.com is a leading online automotive lenders, originating and servicing its consumer loans almost entirely over the Internet.
PeopleFirst.com was the pioneer of "blank check" auto lending, an innovative finance option that gives loan recipients a no-obligation check that can be used for the purchase of a new or used vehicle at most dealerships in the country, as well as lease buyouts and refinancing of existing loans. Motorcycle loans were added in January 2000. Additionally, through an agreement with Mail Boxes Etc., PeopleFirst.com is the first company on the Internet offering loans for the purchase of vehicles from individuals.
PeopleFirst.com has additional relationships with CarPoint, Creditland, Edmunds.com, Insweb, Kelley Blue Book, Lending Tree, NADA, Telebank, and Yahoo!, among others. The company presently offers auto loans in 47 states plus the District of Columbia. To obtain more information about the company, call PeopleFirst.com at 800/689-1789 or visit the company's Web site at http://www.peoplefirst.com.
About Madison Dearborn Partners
Madison Dearborn Partners (MDP) is a leading private equity investment firm with more than $4 billion of assets under management. Headquartered in Chicago, MDP invests primarily in venture capital, growth equity, management buyouts, and recapitalization transactions and focuses on investments in several specific industries including financial services, communications, natural resource and basic industries, consumer, health care and industrial.
About Morgan Stanley Dean Witter Venture Partners
Morgan Stanley Dean Witter Private Equity is the private equity business of Morgan Stanley Dean Witter , a preeminent global financial services firm. Since its founding 15 years ago, funds managed by Private Equity have invested $4 billion of equity in more than 160 companies around the world. Private Equity is part of Morgan Stanley Dean Witter's asset management business and is comprised of Capital Partners, Venture Partners and Emerging Markets. Venture Partners manages a group of funds that invest in emerging growth companies within the information technology and healthcare industries, primarily in the United States. Venture Partners' current fund, Morgan Stanley Dean Witter Venture Partners IV, L.P., is capitalized at $550 million.
About American Express
American Express Company is a diversified worldwide travel, financial and network services company founded in 1850. It is a leader in charge and credit cards, Travelers Cheques, travel, financial planning, investment products, insurance and international banking. At http://www.americanexpress.com, consumers, small businesses and corporations can choose from a wide range of Internet products and services, including the ability to check Card account information and pay bills online, online banking, online brokerage and corporate travel and expense management. American Express is making minority equity investments in emerging Internet companies, as well as building strategic alliances with these organizations by signing marketing and supplier agreements, obtaining exclusive offers for customers, or targeting investment dollars for marketing purposes.
About Mail Boxes Etc.
This year marks the 20th anniversary of Mail Boxes Etc. (MBE), the world's largest retail business, communication and postal services franchisor. MBE, a wholly owned subsidiary of U.S. Office Products Company , has more than 4,000 locations operating worldwide and master license agreements in nearly 70 countries around the world. In the United States, MBE centers are owned and operated by licensed franchisees of Mail Boxes Etc. USA, Inc. Outside the United States, MBE centers are owned and operated by MBE master licensees or their franchisees. MBE maintains a Web site at http://www.mbe.com.