Management buyout at SME lender OnDeck

by Mike Wood02 Feb 2022

SME lender OnDeck Australia has announced the completion of a management share buyout, with the current senior management increasing their stakes in the business to 80%.

CEO Cameron Poolman, CFO Jerry Yohananov and COO Charlene Batson have bought 58% of the company, buying shares from US-based Enova International, who will maintain their control of 20% of OnDeck. 22% will remain in the hands of Australia-based long-term investors.

OnDeck has pioneered tech-based lending platforms such as Lightning Loans, their two-hour approval lending product, and enjoying significant success in 2021, with 175% growth in broker-originated loans.

CFO Jerry Yohananov said that the management had backed brokers in the past and that the buyout would enable them to further support the channel.

“The right factors are in place for OnDeck Australia to enjoy sustainable growth,” he said.

“Our delinquency rates are low, our loan book is performing amazingly well, and we have the ongoing support of outstanding business partners including many in the broker space.

“With senior management now owning the business, our focus on brokers will be amplified, and we will be able to offer even better product features, execution and service.”

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CEO Cameron Poolman said that the management taking financial control was a sign that the business model was working.

“A management buyout is always clear evidence of the faith a management team has in a company – and this is definitely the case for OnDeck Australia,” said Cameron Poolman.

“The executive team sees significant opportunities for OnDeck Australia.  The back end of 2021 saw an impressive uptick in demand for our unsecured small business lending products.

“Loan originations were over 50% higher in November and December 2021 compared to the four previous months, and we believe additional tailwinds will contribute to further growth in 2022.

“Looking ahead, we are highly optimistic that Australia’s small business community will flourish as the economy regains momentum. Businesses will require credit to reach their full potential, and this will support sustainable growth for OnDeck Australia.”