GTCR Expands Its Portfolio with Acquisition of Concord Servicing Company

GTCR Acquires Concord Servicing

In a significant move within the financial services industry, GTCR, a prominent private equity firm, has successfully acquired Concord Servicing. Specializing in providing innovative software and administrative services for specialized loan servicing, Concord represents a strategic addition to GTCR’s portfolio. Under this acquisition, Dhruv Vakharia has been appointed as CEO. He will spearhead the company’s growth strategy going forward.

Overview of Concord Servicing

Based in Scottsdale, Arizona, Concord Servicing has established itself as a leader in specialized loan servicing solutions, effectively maintaining a comprehensive suite of software and administrative services. The company currently manages an impressive $16 billion in consumer loans, providing critical functionalities that include loan administration, payment processing, and default management.

Vakharia joins Concord with over two decades of experience in financial services. His background includes notable roles such as Chief Operating Officer and Chief Financial Officer at various global loan servicing companies. His extensive knowledge and expertise in credit and capital markets will be instrumental as Concord navigates its next growth phase.

Strategic Vision and Leadership

GTCR is implementing its Leaders Strategy™, which emphasizes identifying and partnering with exceptional management leaders to drive transformative growth. Michael Hollander, Managing Director at GTCR, expressed confidence in the potential for Concord to expand its offerings in the specialized loan servicing sector. "By investing in strategic acquisitions and enhancing key areas, we aim to serve the evolving needs of loan originators and investors even better," he stated.

Vakharia, upon his new appointment, highlighted the importance of leveraging his expertise in collaboration with the talented Concord team. He expressed gratitude for the leadership of Jason Alexander, who will transition to a position on the Board of Directors but remains committed to the company’s ongoing success.

Future Directions

The acquisition comes as GTCR looks to bolster the capabilities of Concord Servicing. The integration of innovative technology and investment in product development are expected to position Concord favorably in addressing the quickly growing needs of the loan servicing sector.

Kirk Smith, Principal at GTCR, emphasized the firm’s history and experience in lending and capital market technologies, which will facilitate Concord’s expansion strategy. The firm has a successful track record of identifying growth opportunities and aiding companies in scaling their product offerings.

With Concord’s management of millions of active accounts and services extended not only across the U.S. but also into Mexico, the future seems promising as the company seeks to enhance its servicing solutions. Concord is recognized for delivering tailored and compliant portfolio servicing solutions across various industries, such as home improvement finance and residential solar.

The acquisition has garnered significant attention as GTCR aims to pioneer advancements within the financial technology space by expanding Concord’s best-in-class services to a wider audience of specialty lenders. As noted by industry observers, the move positions both GTCR and Concord as key players in the evolving landscape of financial services, and it reflects a broader trend of consolidation among service providers in response to increasing demands within the industry.

In summary, the acquisition of Concord Servicing by GTCR marks an exciting chapter for both entities, setting the stage for strategic growth initiatives and enhanced service offerings in the future.