Arra Finance Acquires Crescent Auto Finance to Expand Subprime Platform
Deal News | Jun 11, 2025 | Globenewswire
Arra Finance, a leading subprime indirect auto finance company, has agreed to acquire Crescent Auto Finance, the auto finance division of Crescent Bank. This strategic acquisition enhances Arra's platform capabilities, including e-contracting and internal loan servicing, and significantly expands its operational capacity. Crescent Bank, with over $1 billion in assets, will continue its branch and online retail operations while Arra takes over servicing Crescent's $815 million auto loan portfolio. The acquisition, backed by Obra Capital, will enable Arra to provide a wider array of financing solutions to auto dealers across the US. The transaction, expected to close in Q3 2025, will incorporate around 180 new Crescent employees into Arra’s team. Arra’s CEO, Kenn Wardle, emphasizes the potential for rapid growth and enhanced service delivery, turning Arra into a premier financing partner for dealers. Crescent Bank's Chairman, Gary Solomon Sr., expresses confidence in focusing on core retail banking following the sale. Obra CEO Blair Wallace highlights how the capital backing strengthens Arra's competitive position and future prospects in the subprime market.
Sectors
- Financial Services
- Automotive Finance
Geography
- United States – Both Arra Finance and Crescent Bank operate within the United States, providing auto finance solutions across the nation. Crescent, based in Louisiana, and Arra, based in Texas, illustrate significant regional coverage.
Industry
- Financial Services – The article primarily focuses on the financial services sector, specifically within the subprime auto lending market. Arra Finance and Crescent Bank are involved in auto financing and banking services.
- Automotive Finance – This involves companies providing loans or financial products for car purchases, emphasizing Arra Finance expanding through its acquisition of Crescent Auto Finance division, impacting the automotive finance sector.
Financials
- Not Disclosed – Financial terms of the acquisition between Arra Finance and Crescent Bank were not disclosed.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Arra Finance, LLC | Acquiring Company | Company | A subprime indirect auto finance company acquiring Crescent's auto finance division to scale its operations. |
| Crescent Bank | Vendor | Company | A New Orleans-based FDIC insured bank selling its auto finance division to Arra Finance. |
| Obra Capital | Financial Backer | Company | Provides financial support to Arra Finance, facilitating the acquisition with significant capital structure involvement. |
| Kenn Wardle | Chief Executive Officer of Arra Finance | Person | Leads Arra Finance, steering the company through its acquisition and growth strategies. |
| Gary Solomon Sr. | Chairman of Crescent Bank | Person | Chairman overseeing Crescent Bank's shift in focus following the divestment of its auto finance division. |
| Blair Wallace | President and CEO of Obra | Person | CEO of Obra Capital, providing strategic financial support for the acquisition deal. |