EDMONTON, Alberta -

Carfinco Income Fund gained a major contract earlier this week, as it agreed to service a U.S. equity fund-owned auto loan portfolio that is worth more than $150 million. And with the addition of the third-party portfolio, Carfinco plans to launch a Quebec service center.

The portfolio includes both prime and non-prime Canadian consumers and is seeing about a 20-percent annual growth rate, Carfinco indicated.

“Carfinco is well suited to service this portfolio having 14 years of experience in originating and servicing loans in the non-prime automotive sector,” stated Carfinco chief executive officer Tracy Graf.

“We will be servicing this portfolio in conjunction with administering our own portfolio which is currently greater than $150 million and growing by approximately 20-percent per year,” he added.

“Servicing this portfolio will generate significant additional revenues for the fund as well as provide Carfinco insight into the performance of risk based pricing loans in each of the Canadian provinces,” Graf continued.

Carfinco said the new portfolio will likely “wind down” during the next two to three years as the loans approach maturity.

With regards to the new facility, Graf added: “Having a center in Quebec, working in conjunction with our head office location in Edmonton will not only assist in servicing this third party portfolio, but will also increase the effectiveness of Carfinco administering its own portfolio across Canada.”