The latest in a long series of acquisitions for UFA companies by private equity firms has been the acquisition of UFA debt management business UFA Income through a transaction known as UFA Cash. This is the second acquisition of a UFA business by private equity firms this month following the acquisition of GAO Capital Management Inc. A number of large financial institutions have participated in this acquisition including Bank of America and Citibank. The acquisition is based on the success of UFA Financial, which is primarily engaged in the sale of consumer and mortgage-related debt and is well positioned to help financial markets as a result of its strong balance sheet and strong cash generation capabilities.
UFA is focused on helping clients manage their debt through its unique credit debt management offerings. Through its one-year limited partnership with Fannie Mae, which is the single largest lender in the United States, it can help manage clients’ debt as well as provide them with a framework within which they can restructure their loans. UFA’s low cost, high return income generated offers a unique opportunity for financial services and banking clients to generate additional income while streamlining their bottom line. The acquisition will be used to further strengthen the already impressive line of credit cards offered by UFA.
The transaction will begin at the end of February and will run until April or May, depending upon the progress of the transaction. In the first year, UFA will introduce a new credit card that will allow UFA Income clients to obtain up to one million dollars in financing over one year. The new credit card will be offered at a lower interest rate than all UFA managed credit cards. In addition, the new card will offer a higher percentage rate of down payment and cash back on purchases as well as an enhanced credit card balance transfer offer. UFA will also work to implement a number of enhancements to its credit card offerings, including additional offerings for specialty credit card lines and expanding its retail credit card business.