Puerto Rico Police Association Launches Affordable Consumer Lending Platform for First Responders

·3 min read

SAN JUAN, Puerto Rico, July 27, 2021--(BUSINESS WIRE)--The Puerto Rico Police Members Association (AMPPR), in partnership with Orchid Funding LLC (Orchid), is proud to announce the launch of a new lending program to its members, public employees, and pensioners. Borrowers have the opportunity to obtain personal loans via AMPPR to meet their liquidity needs. The program leverages Orchid’s lending capabilities and the benefits provided by Puerto Rico’s Act 94, which provides for loan payments through automatic deductions from payroll or pension payments. The program’s principles will ensure each loan is based on Consumer Financial Protection Bureau (CFPB) guidance; which intends that borrowers do not become overburdened and will offer loans at a lower rate than other Puerto Rico lending sources.

"We heard our members loud and clear. They needed ways of accessing loans and the options available to them were not sufficient," said Jose J. Taboada, AMPPR President. "Creating this program is the culmination of years of effort and we are happy to share that AMPPR’s portion of the profits will be utilized to support families of our Members that fell in the line of duty, including scholarships for their children."

The program will initially focus on funding AMPPR members, and, over time, be available to most Puerto Rico government/municipal employees and pensioners.

In support of this consumer lending platform’s launch, AMPPR and Orchid closed a $25 million credit facility with Celeres Capital Advisors LLC, Medalist Partners LP, and co-investors. With initial financing in-hand, AMPPR will launch a marketing promotion and rollout the program over the next 6 months. Based on milestones and other terms within the agreement structured by Celeres, AMPPR has the flexibility to increase the credit facility to $100+ million.

"We are excited to work with AMPPR, Orchid, and Celeres to provide this inaugural debt financing, which will kickstart the Orchid origination and servicing platform," said John Slonieski, Director of Private Credit and Partner at Medalist Partners. "We believe the unique structure of Act 94, extensive experience of Orchid’s management team, commitment to service, and innovative lending strategy make this company an ideal fit for a secured debt transaction within our asset-based private credit business."

"It’s not every day that you have the opportunity to positively impact an entire economy by providing much needed capital access to employees representing 1 in every 5 members of the workforce in Puerto Rico," said Frank Turner, Senior Managing Partner at Celeres. "Act 94 allows AMPPR and Orchid to provide public employees an affordable product that is less expensive than the average cost of small loans that OCIF [Office of the Commissioner of Financial Institutions] is reporting in the Puerto Rico market today."

Celeres Capital Advisors was advised by a team led by Jeffrey Stern at Winston & Strawn LLP and O'Neill & Borges LLC.

About Police Members Association of Puerto Rico

A non-profit organization established in 1934 to provide services for active employees and pensioners of the Police Force. The Association President is Jose Juan Taboada. For more information visit www.policiaasociado.com or www.prestamosamppr.com.

About Celeres Capital Advisors

Celeres is an institutional Registered Investment Advisor based in San Juan, PR. Celeres and its affiliates collectively manage approximately $325 million in assets under management. Celeres provides growth capital in the form of both private credit and private equity (including venture capital), with an emphasis on financial services companies. For more information visit www.celerescapital.com or LinkedIn.

About Medalist Partners

Medalist Partners is a privately held alternative credit manager based in New York, NY. Medalist and its affiliates collectively manage approximately $2 billion in assets under management across strategies in asset-based private credit, structured credit and CLOs. Clients include pensions, endowments, foundations, banks, family offices and high net worth individuals. For more information visit www.medalistpartners.com or LinkedIn.

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News Media Contact:
Paul Carey, CFA
Managing Partner
(913) 638-6101

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