Exeter Finance is changing hands from one investment firm to another that already has a robust automotive portfolio.

The finance company that specializes in the subprime market announced on Monday that it has entered into a definitive agreement to be acquired by an investor group led by Warburg Pincus from funds managed by Blackstone.

According to a news release, terms of the private transaction were not disclosed.

“We are thrilled to partner with the Warburg Pincus-led investor group as we enter this next phase of growth for Exeter. We have made tremendous progress under Blackstone’s ownership establishing Exeter as an industry leader, and I’m proud of the team’s solid execution,” Exeter chief executive officer Jason Grubb said in the news release.

Warburg Pincus is a long-time, active investor in the auto industry across a variety of verticals including finance companies, rental car providers, e-commerce distribution and software platforms.

The firm’s notable investments in the auto value chain include:

— Santander Consumer USA (SCUSA)
— China Auto Rental
— Au Financiers
— Uxin
— defi SOLUTIONS
— Cango
— Car Trade

“Exeter Finance is a pioneer in offering innovative financial solutions at scale across the credit spectrum. We have over a decade-long close and successful working relationship with this best-in-class management team and are looking forward to partnering with them again in Exeter Finance,” said Dan Zilberman, managing director and head of special situations at Warburg Pincus.

The news release indicated the transaction is expected to close by the end of the year and is subject to customary closing conditions.

Executives added that Grubb will remain as CEO and a meaningful investor in the company, alongside the current Exeter management team.

“We are excited to partner with Jason and the Exeter Finance team to further build on the company’s leading market position and accelerate future growth,” Warburg Pincus managing director Eric Friedman added.

Blackstone’s relationship with Exeter stretches back a decade when the investment firm acquired the finance company, pushing $277 million into the operation in August 2011. Since then, the company has grown by underwriting, purchasing, servicing and securitizing retail installment contracts from more than 11,000 dealers and 475,000 customers nationwide.

Citi served as the lead financial advisor for Exeter Finance and Blackstone, along with Barclays, Deutsche Bank and Wells Fargo. Skadden, Arps, Slate, Meagher & Flom LLP served as legal advisor to Exeter Finance and Blackstone.

J.P. Morgan served as financial advisor and Wachtell, Lipton, Rosen & Katz served as legal advisor to the acquirers.