Special Finance

March 2015
Specialty Finance
Industry Insights
A review of M&A activity and
public market valuation in the
consumer and commercial
specialty finance sectors
William Blair
Table of Contents
Introduction .....................................................................................................................................................................................................................................................1
Consumer Specialty Finance .....................................................................................................................................................................................................................2
M&A Trends.................................................................................................................................................................................................................................................2
Select M&A Transactions .......................................................................................................................................................................................................................3
Public Valuation Update .........................................................................................................................................................................................................................4
Commercial Specialty Finance..................................................................................................................................................................................................................7
M&A Trends.................................................................................................................................................................................................................................................7
Select M&A Transactions .......................................................................................................................................................................................................................8
Public Valuation Update .........................................................................................................................................................................................................................9
Capital Markets Transactions ................................................................................................................................................................................................................ 12
Recent Equity Offerings ....................................................................................................................................................................................................................... 12
Recent Debt Offerings .......................................................................................................................................................................................................................... 14
Recent Preferred Equity Offerings .................................................................................................................................................................................................. 15
Financial Services & Technology Analysts and Coverage .......................................................................................................................................................... 16
Investment Banking Team Biographies ............................................................................................................................................................................................ 17
Select William Blair Transactions ........................................................................................................................................................................................................ 18
Notes ................................................................................................................................................................................................................................................................ 19
Disclosures..................................................................................................................................................................................................................................................... 20
Specialty Finance Industry Insights

Table of Contents
William Blair
Introduction
Specialty finance can be broadly defined as any financing activity that takes place outside the traditional banking system. Typically,
specialty finance firms are thought of as non-bank lenders that make loans to consumers and small to midsize businesses that cannot
otherwise obtain financing. This report covers trends in M&A activity, transaction multiples, and public company valuations in the
consumer and commercial specialty finance sectors. Specifically, consumer specialty finance includes auto finance, collection,
alternative financial services, credit card, and mortgage companies. Commercial specialty finance includes business development
companies (BDCs), commercial finance, commercial real estate lending, and leasing companies. We hope you enjoy this report, and
we welcome any feedback.
Summary of M&A Activity
Both the M&A and equity markets performed strongly in the first quarter. Total global year-to-date M&A volume is over $400 billion,
up more than 5% from the corresponding period last year, and over the same period the total disclosed dollar volume of new equity
issuances (both initial public offerings and follow-on offerings) is up more than 17%. While some industry veterans believe
valuations are ahead of themselves, deal activity suggests otherwise.
This theme persists within the specialty finance sector and we believe 2015 M&A activity will remain strong for high quality
companies in this sector. Large strategic acquirers with healthy war chests will likely continue to pursue companies with
differentiated solutions, go-to-market strategies, and proven strong growth and profitability. In addition, private-equity firms remain
highly active in the specialty finance sector. Aging portfolio companies of private-equity firms in particular, specialty finance
businesses purchased before or during the downturn may create liquidity opportunities in the near to midterm and will continue to
fuel middle-market M&A activity.
Specialty finance companies generate high margins and recurring cash flows. In addition, these companies have meaningful
operating leverage. As a result, M&A transactions in the sector are generally completed at attractive multiples. Since 2002,
approximately 53% of the aggregate deals in the consumer specialty finance sector have been completed at above 10.0 times LTM
net income, and approximately 18% have been completed at more than 3.00 times LTM book value. In the commercial specialty
finance sector, approximately 46% of the aggregate deals since 2002 have been completed at above 10.0 times LTM net income, and
approximately 22% have been completed between 1.50 and 3.00 times LTM book value. Acquirers in the sector are most often
strategic parties that are able to pay more because of the significant revenue synergies generated by pushing new or stronger finance
products through an established distribution platform. In addition, many private-equity funds have developed a differentiated level
of industry knowledge and expertise, and as a result have established strong reputations in the sector.
In 2015 thus far, M&A activity in the sector has been strong, driven primarily by strategic acquirers looking for new products and
segments, differentiated platforms, and additional avenues for growth. Examples include New Residential Investment Corporations'
acquisition of Home Loan Servicing Solutions and Huntington Bancshares acquisition of Macquarie Equipment Finance. While global
economic uncertainty may cause the broad universe of buyers and sellers to proceed more cautiously in 2015, we remain optimistic
that both M&A and capital markets activity will remain strong for solidly performing businesses.
Robert Metzger
+1 312 364 8517
rmetzger@williamblair.com
J.P. Young
+1 312 364 8160
jyoung@williamblair.com
Kegan Greene
+1 312 364 8113
kgreene@williamblair.com

Introduction 1
Consumer
Specialty
Finance
Sector
William Blair
Consumer Specialty Finance

M&A Trends
Year-to-date aggregate M&A transaction volume is running slightly ahead of the comparable period in 2014, though disclosed
dollar volume is meaningfully lower over the same period.
Approximately 53% of the aggregate deals since 2002 have been completed at above 10.0 times LTM net income, and
approximately 18% have been completed at more than 3.00 times LTM book value.
Transactions less than $50 million were completed at an average of 5.9 times LTM net income, meaningfully lower than LTM net
income multiples on deals above $50 million.
Historical Transaction Volume

100
80
60
40
20
0
Average: 49
79
47
41
2002
2003
75
53
2004
2005
2006
54
2007
32
33
46
50
2008
2009
2010
2011
25.0%
42
47
39
2012
2013
2014
10
2014
YTD
2015
YTD
Historical Transaction Dollar Volume ($ in millions)

($ in millions)
$60,000
$40,000
$20,000
$17,055
$26,075
2002
2003
$51,379
$8,866
2004
Average: $16,322
$16,926
2005
2006
$2,090
2007
$3,299
LTM Net Income Multiple Breakdown
14.5%
32.3%
10.0x
5.0x
0.0x
5.9x
<$50mm
2009
Greater than 10.0x

Less than 5.0x
7.5x
$50mm - $100mm
Source: SNL Financial and William Blairs market analysis.

Note: Year-to-date as of February 28, 2015.

2 Consumer Specialty Finance
2010
2011
54.5%
5.0x to 10.0x
53.2%
$12,024
$10,519
2012
$1,817
2013
(27.4%)
$6,009
2014
$1,828
2014
YTD
$1,327
2015
YTD
LTM Book Value Multiple Breakdown
LTM Net Income Multiple by Transaction Size

15.0x
2008
$2,754
$43,055
13.4x
>$100mm
18.2%
Greater than 3.00x

1.50x to 3.00x
27.3%
Less than 1.50x
LTM Book Value Multiple by Transaction Size

1.50x
1.40x
1.30x
1.20x
1.10x
1.00x
0.90x
1.36x
<$50mm
1.12x
$50mm - $100mm
1.34x
>$100mm
William Blair
Select M&A Transactions

Transaction Value /
Announced
Date
Sub-Sector
Buyer Name / Target Name
03/10/15
Mortgage
The J.G. Wentworth Company/ Weststar Mortgage, Inc.
02/23/15
Mortgage
Investor group/ FBC Mortgage, LLC
03/03/15
02/22/15
02/18/15
02/10/15
02/09/15
02/09/15
01/28/15
01/28/15
01/27/15
01/12/15
01/08/15
12/18/14
12/15/14
12/10/14
12/10/14
12/01/14
11/24/14
11/13/14
11/10/14
11/07/14
10/21/14
10/08/14
09/24/14
09/23/14
09/16/14
09/11/14
09/09/14
08/25/14
08/06/14
08/01/14
07/07/14
07/02/14
06/05/14
05/05/14
04/17/14
04/16/14
04/15/14
04/02/14
03/27/14
03/26/14
03/03/14
03/01/14
AFS
Collection
Collection
Mortgage
Mortgage
Mortgage
Mortgage
Mortgage
AFS
Mortgage
Mortgage
AFS
Mortgage
Mortgage
Mortgage
Mortgage
AFS
Mortgage
AFS
Mortgage
Auto
Mortgage
Collection
Auto
Auto
Mortgage
AFS
AFS
Mortgage
Collection
Auto
Mortgage
Mortgage
Mortgage
AFS
AFS
AFS
AFS
Auto
Mortgage
Mortgage
Mortgage
Transaction
Value
$54.0
LTM Net
Income
-
LTM Book
Value
-
Springleaf Holdings, LLC/ OneMain Financial Holdings, Inc.
$4,250.0
7.5x
1.30x
New Residential Investment Corp./ Home Loan Servicing Solutions, Ltd.
$1,296.1
7.6x
1.02x
$7.0
Cerberus Capital Management, L.P./ Gescobro Collection Services
Cherry Hill Mortgage Investment Corporation/ Aurora Financial Group, Inc.

Legal & General Group/ New Life Mortgages Ltd.
Wilshire Bancorp, Inc./ Bank of Manhattan's mortgage lending division

Skipton Building Society/ Topaz Finance Limited
Paragon Financial Resources/ Houston Capital Mortgage, Inc.

EZCORP, Inc./ Twelve pawn store operations
Citizens Financial Corp./ Reliance Mortgage Company
Impac Mortgage Holdings, Inc./ Mortgage operations of CashCall, Inc.

BNP Paribas/ JD Group's consumer finance business
Aquiline Holdings LLC/ LenderLive Network, Inc.
Academy Mortgage Corporation/ Republic Mortgage Home Loans, LLC
Open Mortgage, LLC/ 360 Mortgage Group's reverse mortgage origination business
MidAmerica Mortgage, Inc./ Affinity Lending Soultions. LLC
$5.0
$19.3
$398.0
Tiptree Financial Inc./ Reliance First Capital, LLC
$34.7
Nishi-Nippon City Bank, Ltd./ Nishi-Nippon Credit Guarantee Co., Ltd.
$24.3
5.2x
0.70x
loanDepot.com LLC/ Mortgage Master, Inc.
Bankers Bancorp of Oklahoma, Inc./ Advance Mortgage Corporation

Fortress Investment Group LLC/ Omnisure Group, LLC
Morrison Grove Capital Advisors/ MMA Financial TC LLC
$15.9
Arrow Global Group PLC/ Capquest Group Limited
$258.2
Banco Santander SA/ Carfinco Financial Group Inc.
$297.8
13.8x
4.08x
GoldenTree Asset Management LP/ Origen Financial, Inc.
$483.3
2.91x
$63.0
5.7x
Mint Leasing, Inc./ Investment Capital Fund Group, LLC

Home Point Capital/ Maverick Funding Corp.
First Cash Financial Services, Inc./ CAMex Holding, LLC

ZAIS Financial Corp./ GMFS, LLC
Encore Capital Group, Inc./ Atlantic Credit & Finance, Inc.

Milestone Partners/ PayLink Payment Plans, LLC
MutualFirst Financial, Inc./ Summit Mortgage, Inc.
Strategic Growth Bank Inc./ Guardian Mortgage Company, Inc.

Freedom Mortgage Corporation/ BluFi Lending Corporation
$196.1
$25.7
LendingClub Corporation/ Springstone Financial LLC
$140.0
14.5x
Aaron's/ Progressive Finance Holdings
$700.0
Nelnet, Inc./ Education Lending Services, Inc.

Lone Star Funds/ DFC Global
Sunset Brands, Inc./ MotorMax
Investor group/ Southern Trust Mortgage LLC
InterLinc Mortgage Services, LLC/ Hometown Mortgage Services, Inc.

First Bells Bankshares, Inc./ Cendera Funding, Inc.
Note: Dollar amount in millions.

Source: SNL Financial and Capital IQ.
$127.1
$1,417.0
0.79x

Consumer Specialty Finance 3
William Blair
Public Valuation Update

Auto Finance
Indexed Price / LTM Earnings Ratios as of 2/28/2015
16.0
Current:
13.5x
14.0
12.0
10.0
8.0
6.0
Feb 2010
Feb 2011
Feb 2012
Public Company Valuations
Feb 2013
Feb 2014
Stock Price /
Company
Stock
Price
Ticker 2/28/15
Ally Financial Inc.
ALLY
Consumer Portfolio Services, Inc.
CPSS
America's Car-Mart Inc.
CACC
Nicholas Financial Inc.
NICK
Debt /
Equity
$20.78 $10,005.6
CRMT
Credit Acceptance Corp.
Equity
Market
Cap.
3-Yr CAGR Margin
LTM
09-14
LTM
LTM
LTM
(2.5%)
0.6%
$178.2
NMF
7.6x
6.6x
1.40x
11.4%
1.8%
$183.4
0.8x
$22.53
Median
ROAE
0.71x
$3,829.7
Mean
ROAA
10.6x
$183.30
Santander Consumer USA Holdings Inc. SC
FY2015
BVPS
15.3x
$456.0
$14.89
LTM
Net Income
Asset
CAGR
4.8x
$53.21
$6.96
EPS
0.5x
16.9x
16.2x
2.02x
17.6%
NA
20.9%
10.8%
(8.9%)
26.4%
18.8%
10.2%
36.7%
$7,862.6
$3,752.6
NMF
2.2x
10.5x
12.9x
9.3x
11.3x
2.29x
2.17x
NA
9.2%
2.6%
4.7%
$2,142.8
1.7x
13.5x
10.6x
1.71x
10.6%
4.1%
7.5%
5.5%
LTM
NMF
13.1%
13.6x
1.18x
6.2%
7.6%
15.4x
NA
5.45x
10.6%
2.5x
11.6x
Feb 2015
26.6%
24.5%
(3.4%)
12.3%
5.5%
40.7%
19.6%
6.6%
1.6%
22.9%
26.3%
18.8%
1.6%
23.6%
Collection
26.0x
Current:
12.4x
22.0x
18.0x
14.0x
10.0x
6.0x
2.0x
Feb 2010
Feb 2011
Feb 2012
Feb 2013
Feb 2014
Stock Price /
Company
Stock
Price
Ticker 2/28/15
Asta Funding Inc.
ASFI
Performant Financial Corporation
PFMT
Encore Capital Group, Inc.

PRA Group, Inc.
Mean
$8.47
Equity
Market
Cap.
Debt /
Equity
EPS
LTM
FY2015
LTM
LTM
$259.1
1.2x
27.6x
22.4x
3.04x
$2,508.5
$977.2
1.6x
1.8x
14.3x
15.6x
10.6x
$645.2
1.4x
12.4x

3-Yr CAGR Margin
LTM
0.62x
$50.09

ROAE
09-14
NMF
PRAA
Median
ROAA
LTM
10.0x
$1,031.4
$5.25
BVPS
0.2x
$39.97
4.2x
10.4x
7.9x
Net Income
Asset
CAGR
$110.0
ECPG
Feb 2015
NA
(2.1%)
NA
6.6%
1.78x
44.5%
13.6x
3.81x
10.6x
6.9%
47.5%
11.4%
(8.8%)
7.8%
15.9%
2.31x
28.5%
36.5%
10.3%
5.6%
19.9%
2.41x
36.5%
7.2%
19.4%
LTM
28.5%
9.7%
4.8%
13.5%
20.5%
20.0%
19.7%
15.7%
13.6%
20.0%
14.9%
William Blair
Alternative Financial Services

18.0x
Current:
11.2x
15.0x
12.0x
9.0x
6.0x
Feb 2010
Feb 2011
Feb 2012
Feb 2013
Stock Price /
Company
Stock
Equity
Price
Market
Ticker 2/28/15 Cap.
Cash America International, Inc.
CSH
$21.58
$652.5
0.2x
NMF
22.1x
1.16x
EZCORP, Inc.
EZPW
$10.44
$560.1
0.4x
15.8x
8.9x
1.16x
0.2x
NMF
Enova International, Inc.
ENVA
First Cash Financial Services Inc.
FCFS
QC Holdings, Inc.
Springleaf Holdings, Inc.
$1,363.2
RM
$15.60
$198.8
WRLD
$82.11
LEAF
World Acceptance Corp.

Mean
$762.0
$48.14
QCCO
Regional Management Corp.
$23.09
Debt /
Equity
$1.72
$38.45
$30.1
$4,415.3
3.2x
EPS
LTM
FY2015 LTM
6.8x
0.5x
BVPS
6.5x
16.4x
16.8x
1.9x
13.7x
8.6x
4.6x
7.99x
NA
8.8x
16.3x
$776.8
$1,094.9
1.9x
1.6x
8.3x
11.6x
8.0x
12.4x
$707.2
1.2x
11.2x
8.9x
Median
4.89x
Feb 2014
Net Income
Asset
CAGR
ROAA
ROAE
3-Yr CAGR
Margin
09-14
LTM
LTM
LTM
LTM
3.7%
1.4%
(0.9%)
(10.1%)
23.3%
4.4%
4.0%
NA
(5.4%)
NA
3.5%
15.1%
57.2%
19.8%
6.5%
NA
5.2%
8.7%
2.0
2.18x
(10.3%)
7.1%
7.5%
4.6%
32.6%
31.6%
9.0%
44.5%
11.8%
(5.4%)
2.46x
9.9%
22.8%
0.43x
1.13x
Feb 2015
14.5%
11.9%
7.6%
(22.9%)
1.3%
29.9%
2.67x
10.1%
8.5%
12.3%
16.4%
7.1%
20.1%
3.5%
10.9%
1.67x
10.1%
6.2%
14.3%
1.7%
10.5%
Credit Card
36.0x
Current:
21.9x
30.0x
24.0x
18.0x
12.0x
6.0x
Feb 2010
Feb 2011
Feb 2012
Feb 2013
Stock Price /
Company
Stock
Price
Ticker 2/28/15
Equity
Market
Cap.
Debt /
Equity
EPS
LTM
FY2015
Alliance Data Systems

Corporation
ADS
$278.51
$17,491.8
5.4x
35.4x
18.7x
Discover Financial Services
DFS
$60.98
$27,272.7
2.0x
12.4x
11.4x
Synchrony Financial
SYF
American Express Company AXP

MasterCard Incorporated
Visa Inc.
Mean
MA
V
Median
$81.59
$83,154.5
$90.13 $103,510.0
$31.95
$26,638.8
3.0x
0.2x
2.6x
14.7x
29.1x
11.5x
Feb 2014
Feb 2015
Net Income
BVPS
Asset
CAGR
ROAA
ROAE
3-Yr CAGR
Margin
LTM
09-14
LTM
LTM
LTM
LTM
NMF
31.1%
2.75x
12.6%
12.4x
2.96x
NA
14.9x
4.95x
25.9x
NMF
4.9%
4.5%
29.6%
2.9%
21.2%
3.8%
15.5%
21.6%
29.3%
17.1%
9.5%
6.0%
18.2%
NMF
23.8%
38.2%
3.1%
30.4%
NA
3.7%
33.0%
33.4%
$271.31 $166,557.4
$70,770.9
NMF
2.7x
30.3x
22.2x
26.2x
18.3x
5.86x
4.13x
3.6%
13.5%
13.8%
8.3%
20.4%
26.2%
13.8%
12.9%
29.3%
43.3%
$55,213.6
2.6x
21.9x
16.8x
3.96x
12.6%
4.1%
29.3%
13.8%
33.2%

Consumer Specialty Finance 5
William Blair
Mortgage
25.0x
Current:
10.3x
20.0x
15.0x
10.0x
5.0x
0.0x
Feb 2010
Feb 2011
Feb 2012
Feb 2013
Stock Price /
Company
Stock
Price
Ticker 2/28/15
Ellington Financial LLC
EFC
$20.48
$685.1
2.2x
Nationstar Mortgage
Holdings Inc.
NSM
$26.65
$2,424.7
NMF
PMT
$21.44
$1,597.5
2.0x
SGM
$10.02
Heritage Financial Group,

Inc.
Ocwen Financial Corp.
PennyMac Mortgage
Investment Trust
PHH Corporation
Stonegate Mortgage
Corporation
Walter Investment
Management Corp.
Mean
HBOS
OCN
PHH
WAC
Equity
Market
Cap.
$25.89
$8.14
$24.28
$16.67
Median

$228.0
$1,024.1
$1,243.1
$258.3
Debt /
Equity
EPS
LTM
9.8x
FY2015
ROAE
3-Yr CAGR
Margin
09-14
LTM
LTM
LTM
LTM
8.5%
78.9%
(9.3%)
7.3x
2.07x
54.1%
1.8%
20.0%
NMF
15.2%
4.2%
12.8%
44.5%
47.7%
NA
(12.9%)
5.1%
47.9%
9.5%
8.5%
44.5%
6.1x
4.4x
8.4x
NA
NMF
8.7x
8.4x
12.5x
ROAA
LTM
1.7%
3.8x
4.1x
BVPS
20.8%
23.4x
1.1x
Net Income
Asset
CAGR
0.88x
27.3x
8.7x
6.7x
1.61x
0.71x
1.01x
24.4%
28.8%
NA
0.5%
6.1%
5.3%
33.6%
57.1%
1.4%
(2.8%)
(11.3%)
2.12x
58.7%
(0.6%)
(9.8%)
0.95x
NA
NMF
2.4x
12.5x
9.8x
1.15x
25.9%
$1,024.1
2.1x
10.3x
7.8x
0.95x
24.4%
(2.4%)
1.3%
1.7%
25.5%
11.0%
0.80x
$628.8
$1,065.8
Feb 2015
8.3x
1.3x
10.9x
Feb 2014
(10.4%)
NA
8.6%
8.6%
8.4%
(9.3%)
8.6%
Commercial
Specialty
Finance
Sector
William Blair
Commercial Specialty Finance

M&A Trends
Year-to-date aggregate M&A transaction volume and disclosed dollar volume are running significantly above those of the
comparable period in 2014.
Approximately 46% of the aggregate deals since 2002 have been completed at above 10.0 times LTM net income, and
approximately 22% have been completed between 1.50 and 3.00 times LTM book value.
Transactions less than $50 million were completed at an average of 5.6 times LTM net income, slightly lower than LTM net
income multiples on deals above $50 million.
Historical Transaction Volume

50
40
30
20
10
0
39
45
26
2002
2003
43
40
2004
2005
Average: 32
42
2006
2007
29
2008
28
22
2009
16
2010
2011
29
26
2012
2013
125.0%
35
2014
2014
YTD
2015
YTD
Historical Transaction Dollar Volume

($ in millions)
$16,000
$12,000
$8,000
$4,000
$0
$1,551
$7,885
$9,126
2003
2004
2002
$6,484
$5,702
2005
2006
$11,162
2007
LTM Net Income Multiple Breakdown
23.1%
30.8%
10.0x
5.0x
0.0x
5.6x
<$50mm
2008
$2,453
2009
Greater than 10.0x

5.0x to 10.0x
Less than 5.0x
46.2%
8.1x
$50mm - $100mm

Note: Year-to-date as of February 28, 2015.

7 Commercial Specialty Finance
$1,780
2010
$240
2011
$7,802
2012
NMF
$7,314
$4,159
2013
2014
$229
2014
YTD
$1,123
2015
YTD
LTM Book Value Multiple Breakdown
LTM Net Income Multiple by Transaction Size

15.0x
Average: $6,237
$15,423
10.0x
>$100mm
71.7%
21.7%
6.5%
Greater than 3.00x

1.50x to 3.00x
Less than 1.50x
LTM Book Value Multiple by Transaction Size

1.50x
1.00x
0.50x
0.00x
1.00x
<$50mm
1.40x
$50mm - $100mm
1.01x
>$100mm
William Blair
Select M&A Transactions

Transaction Value /
Announced
Date
Sub-Sector
Buyer Name / Target Name
03/09/15
Commercial Finance
BankUnited/ CertusHolding's small business finance unit
03/03/15
Commercial Finance
Triumph Capital Advisors/ Doral Money Inc.
03/03/15
02/24/15
02/20/15
02/11/15
02/10/15
02/06/15
01/23/15
01/20/15
01/15/15
01/09/15
12/30/14
12/15/14
11/26/14
10/31/14
10/31/14
10/14/14
10/13/14
10/10/14
10/09/14
09/29/14
09/26/14
09/04/14
08/26/14
08/11/14
08/05/14
08/04/14
07/11/14
06/28/14
06/10/14
06/05/14
06/02/14
06/02/14
05/15/14
05/05/14
04/22/14
04/08/14
03/28/14
03/14/14
Leasing
Leasing
Commercial Finance
Commercial Finance
Commercial Finance
Leasing
Commercial Finance
Commercial Finance
Commercial Finance
Leasing
Commercial Finance
Leasing
Leasing
Commercial Finance
Leasing
Commercial Finance
Leasing
Leasing
Commercial Finance
Transaction
Value
Wood Creek Capital Management/ Milestone Equipment Holdings
Fortress Investment Group/ UniCredit Credit Management Bank
$21.0
Temasek Holdings Limited/ SVB India Finance Private Limited
$45.4
UniCredit Bank Austria/ Transfinance
General Finance Corporation/ Bristlecone Ventures, LLC
$7.3
AgTexas Farm Credit Services/ Great Plains Ag Credit
Meta Financial Group, Inc./ AFS/IBEX Financial Services, Inc.
General Electric Capital Corporation/ Milestone Aviation Group Limited
$1,775.0
FIMBank/ First Factors
$5.7
Heritage Commerce Corp/ BVF/CSNK Acquisition Corp.
Omega Commercial Finance Corp./ AmericaVest CRE Mortgage Funding Trust, Inc.
National Bancshares, Inc./ Doral Healthcare Finance
United Community Banks, Inc./ Business Carolina Inc.
FBR & Co./ Securities Lending Business

Tiger Global Management/ OnDeck
Ares Management, L.P./ Keltic Financial Services, LLC
Pine Tree Equity Management, LP/ Celtic Capital Corporation
$441.0
Carolina Alliance Bank/ Dave McBride Leasing, LLC
0.14x
Cargills Bank Ltd./ Capital Alliance Finance PLC
1.7x
Signature Bancshares, Inc./ Lease Finance Group, Inc.
$22.5
National Commerce Corporation/ CBI Holding Company, LLC
Commercial Real Estate Northwest Federal Credit Union/ Park Place Equity, LLC

Commercial Real Estate Wood Creek Capital Management, LLC/ Genesis Funding Limited
Commercial Finance
$129.6
General Electric Capital Corporation/ VB Leasing CZ
Element Financial Corporation/ PHH Vehicle Management Services Group LLC
Commercial Finance
Blackrock Kelso Capital Corporation/ GB Credit Partners LLC
Leasing
Commercial Finance
1.58x
Minnwest Corporation/ HiLine Credit Corporation
Commercial Finance
15.2x
Commercial Finance
Commercial Finance
$151.4
General Finance Corporation/ YS Container Services Limited
Commercial Real Estate Sutherland Asset Management Corp./ CIT Small Business Lending Corporation
Commercial Finance
Fortress Investment Group LLC/ MicroFinancial Incorporated
Funding Circle Limited/ LeapPay, Inc.
Commercial Finance
Prosper Marketplace, Inc./ American HealthCare Lending, LLC
Commercial Finance
Leasing
Beacon Credit Union/ Midwest Ag Finance, Inc.
First Midwest Bancorp, Inc./ National Machine Tool Financial Corporation
Commercial Finance
$133.3
$624.0
Aquiline Holdings LLC/ Engs Commercial Finance Co.
Leasing
Leasing
Commercial Real Estate Walker & Dunlop, Inc./ Johnson Capital Group, Inc.
Commercial Finance
$425.0
Wesleyan Assurance Society/ Syscap Holdings Limited
LTM Book
Value
Huntington Bancshares Incorporated/ Macquarie Equipment Finance, Inc.
LTM Net
Income
$1,402.5
24.2x
3.80x
$2.0
$77.0

Commercial Specialty Finance 8
William Blair
Public Valuation Update

Business Development Companies (BDCs)
25.0x
20.0x
Current:
11.4x
15.0x
10.0x
5.0x
Feb 2010
Feb 2011
Feb 2013
Feb 2012
Stock Price /
Company
Stock
Price
Ticker 2/28/15
Apollo Investment Corporation
AINV
BlackRock Kelso Capital Corporation
BKCC
Ares Capital Corporation

Capitala Finance Corp.
CM Finance Inc.
Fidus Investment Corporation

Fifth Street Finance Corp.
Full Circle Capital Corporation

Garrison Capital Inc.
Golub Capital BDC, Inc.
Harvest Capital Credit Corporation
Hercules Technology Growth Capital, Inc.
Horizon Technology Finance Corporation

KCAP Financial, Inc.
Main Street Capital Corporation

Medallion Financial Corp.
Medley Capital Corporation
Monroe Capital Corporation

OFS Capital Corporation
PennantPark Floating Rate Capital Ltd.

PennantPark Investment Corporation
Prospect Capital Corporation
Saratoga Investment Corp.
Solar Capital Ltd.
Solar Senior Capital Ltd.

TCP Capital Corp.
THL Credit, Inc.
TICC Capital Corp.
TPG Specialty Lending, Inc.
Triangle Capital Corporation

Mean
$1,844.2
0.8x
11.8x
$8.78
$654.5
0.5x
5.2x
$17.30
CPTA
$18.81
FDUS
$16.60
FSC
$13.73
$5,434.1
$244.0
$187.6
$266.0
$7.08
$1,085.6
GARS
$15.03
$251.9
HCAP
$12.55
$77.9
FULL
GBDC
HTGC
HRZN
KCAP
$3.88
$17.76
$46.4
$837.8
$15.55
$998.2
$7.50
$275.4
$14.13
$136.0
MAIN
$30.95
$1,397.7
MCC
$9.46
$555.6
TAXI
$10.45
MRCC
$14.91
PFLT
$13.97
OFS
PNNT
PSEC
$12.13
$9.51
TSLX
TCAP
Median


$208.1
$714.1
$854.4
$16.60
$808.6
$16.17
TICC
$116.9
$20.12
SUNS
TCRD
$141.9
$3,093.0
$15.76
TCPC
$258.6
$8.63
SAR
SLRC
EPS
LTM
$7.79
ARCC
CMFN
Equity
Market Debt /
Cap.
Equity
$12.09
$7.29
$18.54
$23.67
$84.8
$186.5
$409.9
0.7x
0.8x
0.7x
BVPS
FY2015 LTM
8.1x
0.89x
10.0x
0.88x
8.9x
10.8x
NA
9.8x
8.1x
NA
0.6x
12.2x
10.0x
1.0x
NMF
5.9x
1.0x
0.9x
21.4x
8.3x
8.0x
9.9x
1.0x
12.5x
13.6x
1.0x
14.1x
11.7x
0.7x
10.0x
7.8x
1.3x
9.2x
0.2x
0.6x
0.8x
8.3x
8.8x
8.1x
10.2x
13.4x
13.6x
0.9x
25.2x
7.0x
1.1x
11.8x
10.6x
13.8x
8.6x
0.8x
0.6x
0.8x
0.8x
1.1x
10.3x
14.0x
9.0x
7.0x
9.8x
9.4x
11.1x
8.1x
8.9x
0.2x
17.8x
12.5x
0.4x
NMF
10.3x
0.7x
16.0x
11.7x
0.6x
11.1x
$778.9
0.5x
11.1x
$779.6
0.8x
11.0x
0.8x
$425.0
0.8x
$440.0
$1,000.4
1.0x
NA
24.8x
8.8x
6.9x
Feb 2014
Net Income
Asset
CAGR
ROAA
ROAE
3-Yr CAGR
Margin
09-14
LTM
LTM
LTM
LTM
7.4%
5.3%
8.2%
4.1%
1.04x
32.6%
0.95x
NA
0.94x
1.09x
NA
NA
0.73x
45.0%
0.96x
NA
0.62x
NA
1.14x
28.7%
1.52x
20.6%
0.96x
(0.4%)
0.95x
2.6%
0.87x
0.98x
1.47x
0.75x
1.07x
0.87x
0.97x
NA
NA
53.9%
NA
NA
NA
NA
0.86x
22.5%
0.71x
10.9%
0.82x
0.90x
0.92x
57.6%
13.8%
NA
1.07x
16.9%
0.78x
35.8%
0.91x
1.18x
Feb 2015
NA
NA
8.0%
NA
36.7%
21.3%
NMF
4.8%
11.6%
22.8%
4.1%
5.6%
NA
(6.9%)
(1.7%)
38.2%
15.8%
4.8%
13.5%
4.6%
3.5%
4.9%
5.5%
7.2%
4.6%
NA
28.0%
NA
59.8%
79.7%
60.4%
7.2%
8.0%
NA
57.2%
5.3%
10.9%
5.9%
9.7%
5.0%
14.9%
5.5%
(19.1%)
4.9%
11.6%
17.0%
5.7%
3.3%
11.7%
2.4%
10.5%
4.9%
10.1%
3.9%
7.0%
3.0%
4.8%
5.5%
NMF
14.4%
NA
5.5%
29.6%
6.3%
NA
9.3%
NA
25.2%
4.1%
10.3%
(5.9%)
3.2%
5.7%
NA
3.0%
5.0%
(7.5%)
58.9%
49.6%
23.9%
47.9%
71.6%
69.9%
9.8%
13.3%
6.8%
9.2%
11.8%
47.2%
5.6%
41.8%
39.7%
52.9%
6.9%
(2.9%)
5.8%
5.8%
27.1%
NA
8.0%
31.2%
48.1%
(0.6%)
12.1%
7.2%
10.8%
11.2%
5.4%
6.4%
10.8%
37.5%
44.2%
33.3%
26.5%
9.2%
12.7%
10.8%
9.5%
10.1%
13.2%
5.3%
5.2%
9.6%
10.0%
9.3%
NMF
(8.1%)
45.0%
9.1%
12.4%
12.2%
9.4%
10.3%
16.1%
3.6%
3.7%
Dividend
Yield
74.9%
9.1%
7.7%
11.6%
8.0%
8.7%
9.3%
49.6%
11.2%
52.1%
8.4%
14.8%
12.5x
10.7x
9.8x
1.42x
0.97x
30.4%
24.2%
4.7%
8.3%
(20.7%)
12.3%
43.6%
9.8%
9.3%
11.4x
9.9x
0.94x
21.5%
4.9%
8.7%
14.9%
47.5%
9.5%
William Blair
Commercial Finance
35.0x
30.0x
Current:
23.1x
25.0x
20.0x
15.0x
10.0x
Feb 2010
Feb 2011
Feb 2012
Feb 2013
Stock Price /
Company
Stock
Price
Ticker 2/28/15
CIT Group Inc.
CIT
$46.28
$8,139.8
4.0x
PacWest Bancorp
PACW
$45.84
$4,722.0
3.6x
NewStar Financial, Inc.
NEWS
SVB Financial Group
SIVB
Mean
$9.98
$122.90
Median
Equity
EPS
BVPS
Market Debt /
Cap.
Equity LTM FY2015 LTM
Feb 2014
Net Income
Asset
CAGR
ROAA
ROAE
3-Yr CAGR
Margin
09-14
LTM
LTM
LTM
LTM
8.1x
13.7x
0.99x
(4.4%)
2.3%
12.0%
$6,263.4
23.6x
7.9%
1.64x
25.1%
1.5%
17.0x
2.22x
25.0%
4.9x 18.3x
21.2x
2.64x
$4,897.6
23.1x
16.0x
12.7%
1.4%
$5,492.7
3.8x 23.1x
16.0x
1.60x
15.0%
$465.1
3.3x
8.6x
NMF
NMF
0.73x
Feb 2015
5.0%
0.4%
Dividend
Yield
NMF
44.5%
1.3%
49.3%
24.6%
4.4%
1.7%
(9.2%)
13.4%
8.8%
18.5%
15.4%
26.2%
19.3%
2.8%
1.4% 10.0%
15.4%
21.9%
2.8%
1.4%
16.6%
NA
NA
Commercial Real Estate Lending

20.0x
Current:
15.7x
15.0x
10.0x
5.0x
Feb 2010
Feb 2011
Feb 2012
Feb 2013
Stock Price /
Company
Stock
Price
Ticker 2/28/15
Ladder Capital Corp
LADR
$18.40
$946.3
2.1x
21.3x
Walker & Dunlop, Inc.
WD
$16.03
$510.1
3.2x
NMF
$556.3 2.3x
10.1x
18.4x
15.7x
$510.1 2.1x
15.7x
Resource America, Inc.

Mean
Median
REXI
$9.30
Equity
EPS
Market Debt /
Cap.
Equity LTM
$212.6
1.5x
BVPS
FY2015 LTM
Feb 2014
Feb 2015
Net Income
Asset
CAGR
ROAA
ROAE
3-Yr CAGR Margin
09-14
LTM
LTM
LTM
8.7x
1.38x
8.8x
1.33x
12.0x
1.47x
50.5%
1.39x
8.8x
1.38x
LTM
Dividend
Yield
NA
3.5%
8.9%
27.8%
21.2%
52.6%
2.7%
12.3%
13.8%
9.0% 20.8%
14.4%
2.6%
51.5%
3.3%
3.5%
13.1%
2.6%
51.5%
3.3%
8.9% 20.8%
14.4%
2.6%
1.4%
5.7%
NA
NA
NA


Commercial Specialty Finance 10
William Blair
Leasing
Current:
13.2x
21.0x
16.0x
11.0x
6.0x
Feb 2010
Feb 2011
Feb 2012
Feb 2013
Stock Price /
Company
Stock
Price
Ticker 2/28/15
AerCap Holdings N.V.
AER
$44.50
$9,448.2
3.8x
9.8x
Air Lease Corporation
AL
$38.24
$3,915.5
2.4x
16.1x
$24.28
$504.7
2.9x
8.5x
AeroCentury Corp.
Aircastle LTD
CAI International Inc.
Element Financial Corporation

GATX Corp.
Marlin Business Services Corp.

Mobile Mini, Inc.
Ryder System, Inc.
TAL International Group, Inc.
Textainer Group Holdings Limited

Willis Lease Finance Corp.
Mean
ACY
AYR
CAP
EFN
GMT
MRLN
MINI
R
TAL
TGH
WLFC
$10.07
$23.07
$12.80
$62.25
$18.71
Equity
Market
Cap.
$16.2
$1,867.5
$3,380.9
$2,757.7
$239.9
Debt /
Equity LTM
3.2x
2.2x
2.8x
$41.73
$1,372.1
4.6x
$32.26
$21.34
Median

$4,980.3
$1,834.4
$179.6
2.5x
2.4x
3-Yr CAGR
Margin
LTM
LTM
LTM
Dividend
Yield
15.6%
67.6%
22.3%
NA
12.9x
1.41x
NA
3.8%
9.7%
68.8%
24.4%
0.4%
1.14x
36.9%
3.7%
14.1%
6.3%
26.5%
NA
2.24x
5.9%
2.9%
15.1%
22.8%
2.09x
3.7%
3.6%
5.2%
13.2%
8.3x
15.6x
12.6x
11.8x
9.7x
ROAE
4.4%
NMF
11.3x
ROAA
09-14 LTM
45.3%
11.5x
22.7x
Net Income
2.75x
18.5x
NMF
NA
1.1x
Asset
CAGR
Feb 2015
8.7x
10.3x
13.9x
$1,915.1
BVPS
FY2015 LTM
NA
3.3x
$41.49
$93.99
EPS
Feb 2014
11.8x
11.6x
14.8x
11.4x
10.8x
0.45x
1.09x
2.11x
1.34x
3.67x
4.5%
6.9%
NA
6.0%
9.1%
2.31x
18.9%
1.57x
26.2%
NMF
4.6%
0.7%
2.6%
5.9%
6.0%
2.5%
11.5%
3.9%
11.9%
4.1%
16.3%
4.6%
3.4%
18.3%
NA
26.9%
NA
46.3%
8.8%
8.4%
12.5%
16.0%
3.8%
NA
14.1%
2.4%
10.0%
1.8%
25.9%
3.3%
4.2%
19.1%
7.8%
NA
33.6%
2.7%
1.6%
6.9%
5.8%
3.5x
$2,493.2 2.9x
24.0x
14.7x
17.3x
12.1x
0.81x
1.77x
4.1%
15.2%
6.6%
3.5% 10.7%
(1.8%)
24.6%
8.0%
17.2%
3.2%
NA
$1,867.5 2.9x
13.2x
11.6x
1.57x
6.9%
3.8% 11.5%
13.2%
16.0%
2.6%
Capital Markets
Transactions
William Blair
Capital Markets Transactions

Recent Equity Offerings
Initial Public Offerings
Market Cap. at Pricing /
Pricing
Date
Company
02/13/15
Great Ajax Corp.
$14.25
12/10/14
LendingClub Corporation
$15.00
12/16/14
12/11/14
11/20/14
10/08/14
07/30/14
05/08/14
04/09/14
03/20/14
03/05/14
02/05/14
02/05/14
01/22/14
01/15/14
11/08/13
11/06/13
10/15/13
10/09/13
10/03/13
09/24/13
07/11/13
05/08/13
05/02/13
05/01/13
03/26/13
03/21/13
02/14/13
02/07/13
12/04/12
11/07/12
11/07/12
10/24/12
On Deck Capital, Inc.
Avolon Holdings Limited

Neff Corporation
Eagle Point Credit Company Inc.

Synchrony Financial
Alcentra Capital Corporation

Ally Financial Inc.
TriplePoint Venture Growth BDC Corp.

CM Finance Inc.
Ladder Capital Corp
Santander Consumer USA Holdings Inc.

American Capital Senior Floating, Ltd.
JGWPT Holdings Inc.
StoneCastle Financial Corp.

Springleaf Holdings, Inc.
Stonegate Mortgage Corporation
Cherry Hill Mortgage Investment Corporation

Capitala Finance Corp.
Fifth Street Senior Floating Rate Corp.

PennyMac Financial Services, Inc.
Ellington Residential Mortgage REIT

Five Oaks Investment Corp.

Orchid Island Capital, Inc.
ZAIS Financial Corp.
WhiteHorse Finance, Inc.

OFS Capital Corporation
Stellus Capital Investment Corporation

Monroe Capital Corporation
Price
5.0
Amount
$71.3
$20.00
10.0
$200.0
$15.00
10.5
$157.1
$20.00
$20.00
13.6
58.0
5.2
$16.00
7.0
$112.0
$25.00
$15.00
$15.00
95.0
8.3
6.7
$17.00
13.3
$14.00
13.9
$24.00
$15.00
$25.00
$17.00
$16.00
$20.00
$20.00
$15.00
$21.25
$15.00
$15.00
$15.00
$15.00
10.3x
$125.0
$2,375.0
$100.0
$225.3
12.4x
9.1x
6.3
$157.1
10.0
21.0
7.1
6.5
4.0
6.7
5.3
$15.00
$100.0
17.2x
$15.00
$15.00
$1,799.8
11.1
$20.00
9.8x
75.0
$18.00
$15.00
$103.1
$870.0
$2,875.0
6.6
12.1x
125.0
$15.00
LTM EPS
$272.7
$23.00
Note: Dollar amount and shares amount are in millions and exclude overallotment.

12 Capital Markets Transactions
Shares
3.4
6.5
4.0
2.4
$150.0
$195.0
$357.8
$51.0
$129.0
$80.0
$75.0
0.80x
1.03x
1.47x
6.44x
3.10x
2.48x
5.75x
$120.0
0.90x
$100.0
8.0
5.0
22.2x
$100.0
$60.5
$35.4
1.11x
$200.0
1.05x
1.12x
$100.0
$80.0
1.00x
14.1x
$130.0
$120.1
6.7
$113.6
5.7
6.7
LTM
Book Value
3.32x
2.35x
William Blair
Recent Equity Offerings (contd)

Follow-On Offerings
Market Cap. at Pricing /
Pricing
Date
03/05/15
Company
Apollo Commercial Real Estate Finance, Inc.
11/21/14
New York Mortgage Trust, Inc.
12/19/14
12/01/14
11/21/14
11/20/14
11/12/14
11/04/14
10/27/14
10/23/14
10/07/14
09/30/14
09/18/14
09/05/14
09/05/14
09/04/14
09/04/14
09/03/14
09/02/14
08/20/14
08/14/14
08/12/14
08/12/14
08/05/14
07/29/14
07/17/14
07/16/14
07/16/14
07/11/14
06/19/14
05/13/14
04/30/14
04/29/14
04/25/14
04/23/14
04/23/14
04/09/14
04/08/14
04/08/14
04/03/14
04/02/14
04/01/14
03/26/14
03/19/14
03/11/14
02/27/14
02/20/14
01/29/14
01/16/14
01/14/14
Ally Financial Inc.

TCP Capital Corp.
Walker & Dunlop, Inc.
Newtek Business Services Corp.

StoneCastle Financial Corp.
Hannon Armstrong Sustainable Infrastructure Capital, Inc.

New Mountain Finance Corporation
KCAP Financial, Inc.
Fidus Investment Corporation
Blackstone Mortgage Trust, Inc.


Arlington Asset Investment Corp.
NorthStar Realty Finance Corp.
Ellington Financial LLC
Santander Consumer USA Holdings Inc.

Fifth Street Senior Floating Rate Corp.

Newcastle Investment Corp.

TCP Capital Corp.

Colony Financial, Inc.
Fifth Street Finance Corp.

ePlus Inc.
New Residential Investment Corp.
Hannon Armstrong Sustainable Infrastructure Capital, Inc.


Starwood Property Trust, Inc.
Western Asset Mortgage Capital Corporation

Blackstone Mortgage Trust, Inc.
PennyMac Financial Services, Inc.

Oxford Lane Capital Corp.

Kayne Anderson MLP Investment Company

Full Circle Capital Corporation
Price
$17.00
Shares
10.0
Amount
$170.0
$7.94
13.0
$103.2
$23.25
$41.23
$17.05
$15.30
$12.50
$23.00
$13.60
$14.53
$8.02
$17.00
$27.49
54.9
11.2
5.9
2.0
2.2
1.6
4.0
5.0
$1,277.0
$463.1
$100.6
$30.6
$27.5
$36.8
$54.4
$65.1
$18.63
$17.33
$14.50
8.5
8.0
10.0
22.8
39.5
4.3
5.0
5.4
2.0
$479.5
$98.9
$170.6
$115.5
$93.2
$93.6
$29.0
3.5
$38.5
$15.45
$16.35
$50.00
30.0
9.0
1.6
$6.10
25.0
$14.30
3.5
$13.00
$13.25
$31.50
5.0
6.0
$16.50
$12.55
$17.00
5.6
3.2
2.8
Note: Dollar amount and shares amount are in millions and exclude overallotment.
7.9x
9.9x
12.8x
11.4x
5.2x
15.3x
$491.0
12.2x
$50.0
$190.7
$221.8
$91.7
$40.2
10.5x
14.0x
8.8x
5.3x
$47.6
18.1x
$34.2
17.5x
$22.5
1.7
10.2x
$79.5
1.8
$7.13
10.5x
$152.5
$12.50
2.3
11.2x
$65.0
$78.7
$284.7
$14.70
15.8x
10.4x
13.0
8.0
12.9x
$147.2
$21.90
$37.05
12.0x
$98.7
8.0
$7.59
13.0
$463.5
$131.8
13.0
$27.72
$14.67
7.9x
17.7x
$126.0
22.0
6.4x
$332.1
4.0
$22.32
29.4x
$11.00
13.3
16.8x
$294.3
$187.7
$224.5
15.0
11.3x
11.2x
13.5
$9.95
$191.4
$16.63
$22.14
$75.9
5.0
$26.85
16.5x
2.8
$13.02
$4.32
11.0x
21.7x
$34.0
$828.0
$12.91
11.4x
$219.9
2.0
$24.1
45.0
$18.68
6.1x
8.0
3.0
$18.40
$23.92
15.1x
10.0x
10.2
$27.61
10.4x
$72.7
$47.10
$11.63
LTM EPS
10.3x
$296.4
$11.8
23.1x
31.6x
LTM
Book Value
0.92x
0.74x
1.18x
1.01x
1.03x
1.25x
1.55x
1.00x
1.37x
1.08x
1.12x
1.29x
1.05x
1.38x
1.14x
0.87x
1.25x
1.24x
2.14x
1.14x
3.61x
1.95x
1.95x
1.13x
1.04x
0.94x
1.07x
0.85x
1.09x
0.76x
2.24x
0.88x
1.51x
1.00x
1.48x
1.17x
1.05x
1.75x
1.38x
1.02x
1.19x
1.11x
0.55x
2.43x
2.37x
1.26x
2.15x
0.85x

Capital Markets Transactions 13
William Blair
Recent Debt Offerings

Date
Company
Offering Description
03/05/15
John Deere Capital Corporation
2.050% Series F medium-term unsecured notes, due Mar 10, 2020
$500.0
03/10/20
03/02/15
3.750% Senior unsecured notes, due Mar 4, 2025
$500.0
03/04/25
03/03/15
02/24/15
02/17/15
02/03/15
02/03/15
01/26/15
01/22/15
01/20/15
01/15/15
01/13/15
01/12/15
01/07/15
01/07/15
01/07/15
01/06/15
12/08/14
12/08/14
12/02/14
11/25/14
11/25/14
11/19/14
11/18/14
11/18/14
11/12/14
11/03/14
10/31/14
10/28/14
10/23/14
10/02/14
10/01/14
09/25/14
09/24/14
09/24/14
09/22/14
09/16/14
09/10/14
09/09/14
09/04/14
09/04/14
PACCAR Financial Corp.
Apollo Investment Corporation

Ryder System, Inc.
GATX Corporation

Synchrony Financial
National Rural Utilities Cooperative

Finance Corporation
Freddie Mac

Aircastle Limited
General Motors Financial Company, Inc.

Resource Capital Corp.
Ford Motor Credit Company LLC
American Honda Finance Corporation

General Electric Capital Corporation
American Express Company
FS Investment Corporation
Springleaf Finance Corporation
1.450% Series N medium-term notes, due Mar 9, 2018

2.650% Unsecured medium-term notes, due Mar 2, 2020

0.500% Reference Notes, due Jan 27, 2017
1.350% Series F medium-term notes, due Jan 16, 2018

5.500% Senior unsecured notes, due Feb 15, 2022
3.150% Senior unsecured notes, due Jan 15, 2020
8.000% Convertible senior unsecured notes, due Jan 15, 2020

1.550% Series A unsecured medium-term notes, due Dec 11, 2017
Floating rate series A senior unsecured global medium-term notes, due Dec
15, 2054
Starwood Property Trust, Inc.

Freddie Mac
National Rural Utilities Cooperative

Finance Corporation
AerCap Ireland Capial Limited
Ally Financial Inc.
General Motors Financial Company, Inc.

American Honda Finance Corporation

Fannie Mae
$25.0
$4,000.0
$500.0
$500.0
$600.0
$1,000.0
$100.0
$750.0
$1,000.0
$78.5
$600.0
5.250% Senior unsecured notes, due Dec 15, 2019
$700.0
5.625% Senior convertible unsecured notes, due Nov 15, 2019

5.875% Senior unsecured notes, due Oct 25, 2024
4.500% Senior unsecured notes, due Dec 1, 2019
2.597% Senior unsecured notes, due Nov 4, 2019
Floating rate series B medium term notes, due Oct 29, 2015
3.750% Convertible senior unsecured notes, due Oct 15, 2017

1.000% Reference Notes, due July 28, 2017
Floating rate series C senior unsecured medium-term notes, due May 12,
2017
5.125% Senior unsecured notes, due Sept 30, 2024

2.300% Series F senior medium term notes, due Sept 16, 2019
2.250% Series A unsecured medium-term notes, due Aug 15, 2019

2.625% Benchmark notes, due Sept 6, 2024
Note: Dollar amount in millions and excludes overallotment.


14 Capital Markets Transactions
$75.0
3.625% Subordinated unsecured notes, due Dec 5, 2024
1.400% Series N medium-term notes, due Nov 17, 2017
Toyota Motor Credit Corporation
$300.0
$500.0
PACCAR Financial Corp.

Ford Motor Credit Company LLC
$400.0
2.850% Collateral trust bonds, due Jan 27, 2025
$350.0
$750.0

Navient Corporation
$500.0
Caterpillar Financial Services Corporation 3.400% Series 84 senior notes, due Nov 25, 2017
RWT Holdings, Inc.
Amount
$325.0
$1,000.0
$400.0
$200.0
$300.0
$500.0
$175.0
$1,250.0
$1,250.0
$375.0
$500.0
$25.0
$800.0
$700.0
$1,250.0
$250.0
$500.0
$500.0
$1,000.0
$4,500.0
Maturity Date
03/09/18
03/03/25
03/02/20
03/30/25
03/15/22
02/03/20
01/16/20
01/27/25
01/27/17
01/16/18
02/15/22
02/01/22
01/15/20
01/15/20
01/09/18
12/11/17
12/15/54
12/05/24
01/15/20
12/15/19
11/25/17
01/15/20
11/15/19
11/17/17
10/25/24
12/01/19
11/04/19
10/29/15
10/15/17
07/28/17
05/12/17
10/01/21
09/30/24
09/25/21
10/01/19
09/16/19
09/15/24
08/15/19
09/06/24
William Blair
Recent Preferred Equity Offerings

Date
02/25/15
Company
Amount
$850.0
Call Date
03/15/20
11/05/14
$750.0
11/15/19
12/04/14
11/20/14
11/05/14
10/13/14
09/04/14
06/17/14
06/12/14
06/03/14
05/29/14
05/21/14
05/13/14
05/12/14
05/05/14
03/20/14
02/26/14
12/18/13
12/10/13
11/13/13
07/16/13
06/13/13
05/29/13
05/28/13
05/08/13
05/06/13
04/23/13
04/15/13
04/11/13
04/08/13
04/03/13
03/12/13
02/07/13
01/29/13
01/29/13
01/14/13
01/10/13
11/19/12
10/09/12
10/03/12
09/25/12
09/20/12
09/13/12
09/06/12
08/16/12
07/27/12
07/27/12
07/25/12
07/25/12
07/24/12
07/19/12
07/10/12
Wells Fargo Real Estate Investment Corp.

Gladstone Investment Corporation
Kayne Anderson MLP Investment Company
$240.0
$25.0
$36.0
$25.0
Invesco Mortgage Capital Inc.
$150.0
$110.0
Federal Agricultural Mortgage Corporation

Gladstone Capital Corporation
$75.0
$75.0
$28.0
$15.0
$55.0
$225.0
$125.0
American Capital Agency Corp.


Farm Credit Bank of Texas


Capstead Mortgage Corporation

Arbor Realty Trust, Inc.
CYS Investments, Inc.
CoBank, ACB
Dynex Capital, Inc.
MFA Financial, Inc.

iStar Financial Inc.
ARMOUR Residential REIT, Inc.

Arbor Realty Trust, Inc.
MuniMae TE Bond Subsidiary, LLC
$175.0
$75.0
$20.0
$100.0
$36.6
$300.0
$20.0
$1,000.0
$75.0
$150.0
$30.0
$200.0
$200.0
$50.0
$175.0
$175.0
$175.0
$135.0
$35.0
$74.0
$60.0
KKR Financial Holdings LLC
$325.0
$125.0

AG Mortgage Investment Trust, Inc.

Apollo Residential Mortgage, Inc.
Annaly Capital Management, Inc.
Hatteras Financial Corp.
CYS Investments, Inc.
AG Mortgage Investment Trust, Inc.

Dynex Capital, Inc.

Invesco Mortgage Capital Inc.
07/09/12
Note: Dollar amount in millions and excludes overallotment.
$15.0
$500.0
$25.0
$100.0
$150.0
$400.0
$250.0
$75.0
$45.0
$50.0
$75.0
$1,750.0
$135.0
$102.7
$63.3
12/11/19
06/30/17
12/31/17
02/09/17
12/27/24
07/18/24
06/19/19
07/30/24
06/30/17
12/23/18
06/30/17
05/15/19
05/08/19
04/17/19
06/30/19
12/23/18
12/31/18
06/30/16
09/15/23
06/30/16
06/15/23
06/04/18
05/13/18
05/09/18
04/30/18
07/01/18
04/30/18
04/15/18
04/10/18
03/15/18
02/12/18
02/01/18
04/30/28
01/17/18
01/15/18
12/31/14
12/01/17
10/11/17
10/02/17
09/27/17
09/20/17
09/13/17
08/27/17
08/03/17
08/03/17
07/31/17
08/01/17
12/15/22
07/26/17
03/20/17
02/07/12
Dividend Rate (%)

4.9%
6.4%
8.1%
5.2%
6.8%
3.9%
7.8%
6.0%
7.5%
8.6%
8.1%
8.8%
6.8%
8.8%
7.8%
6.9%
6.5%
8.8%
6.6%
7.5%
6.8%
7.5%
5.3%
7.8%
7.5%
7.8%
7.5%
6.1%
7.6%
7.5%
8.5%
4.5%
7.9%
8.3%
5.0%
5.9%
7.4%
8.5%
6.5%
8.9%
8.3%
8.0%
8.0%
7.5%
7.6%
7.8%
8.3%
8.5%
8.6%
6.3%
7.8%
8.5%
8.3%

Capital Markets Transactions 15
William Blair
Financial Services & Technology Analysts and Coverage

Insurance Brokers and Property
and Casualty Insurance
Adam Klauber, CFA
Allstate Corporation (The) (ALL)

American International Group, Inc. (AIG)
AmTrust Financial Services, Inc. (AFSI)
Aon plc (AON)
Argo Group International Holdings. Ltd.
(AGII)
Arthur J. Gallagher & Co. (AJG)
Benefitfocus, Inc. (BNFT)
Brown & Brown, Inc. (BRO)
Chubb Corporation (The) (CB)
CNA Financial Corporation (CNA)
Connecture, Inc. (CNXR)
Crawford & Company (CRD.A)
Crawford & Company (CRD.B)
eHealth, Inc. (EHTH)
Erie Indemnity Company (ERIE)
Federated National Holding Company (FNHC)
HCC Insurance Holdings, Inc. (HCC)
Kemper Corporation (KMPR)
Markel Corporation (MKL)
Marsh & McLennan Companies, Inc. (MMC)
National General Holdings Corp. (NGHC)
National Interstate Corporation (NATL)
Navigators Group, Inc. (The) (NAVG)
Patriot National, Inc. (PN)
Progressive Corporation (The) (PGR)
RLI Corp. (RLI)
Travelers Companies, Inc. (The) (TRV)
WebMD Health Corp. (WBMD)
Willis Group Holdings Public Limited
Company (WSH)
Financial Technology and

Specialty Finance
Robert Napoli
Alliance Data Systems Corporation (ADS)

American Express Company (AXP)
Bottomline Technologies, Inc. (EPAY)
CAI International, Inc. (CAP)
Capital One Financial Corporation (COF)
Cardtronics, Inc. (CATM)
Discover Financial Services (DFS)
Encore Capital Group, Inc. (ECPG)
EVERTEC, Inc. (EVTC)
Financial Engines, Inc. (FNGN)
Garrison Capital Inc. (GARS)
Green Dot Corporation (GDOT)
Harvest Capital Credit Corporation (HCAP)
Independence Realty Trust, Inc. (IRT)
Marlin Business Services Corp. (MRLN)
MasterCard Incorporated (MA)
MoneyGram International, Inc. (MGI)
Monroe Capital Corporation (MRCC)
Performant Financial Corporation (PFMT)
PRA Group (PRAA)
QIWI plc (QIWI)
Visa Inc. (V)
WageWorks, Inc. (WAGE)
Western Union Company (The) (WU)
WEX Inc. (WEX)

16 Financial Services & Technology Analysts and Coverage
Asset Management and

Financial Technology
Chris Shutler, CFA
Affiliated Managers Group, Inc. (AMG)

Artisan Partners Asset Management Inc.
(APAM)
Charles Schwab Corporation (The) (SCHW)
Eaton Vance Corp. (EV)
Envestnet, Inc. (ENV)
Euronet Worldwide, Inc. (EEFT)
Fiserv, Inc. (FISV)
Global Payments, Inc. (GPN)
Heartland Payment Systems, Inc. (HPY)
Invesco Ltd. (IVZ)
LPL Financial Holdings Inc. (LPLA)
MSCI Inc. (MSCI)
SEI Investments Company (SEIC)
SS&C Technologies Holdings, Inc. (SSNC)
T. Rowe Price Group, Inc. (TROW)
TD Ameritrade Holding Corporation (AMTD)
Vantiv, Inc. (VNTV)
Waddell & Reed Financial, Inc. (WDR)
WisdomTree Investments, Inc. (WETF)
William Blair
Investment Banking Team Biographies

William Blair & Company Financial Services Investment Banking
Robert Metzger, Managing Director and Head of Financial Services Investment Banking, joined William Blair in 1999. While at William
Blair and in his prior position at ABN AMRO, he focused on the corporate finance needs of insurance, financial technology, and
specialty finance companies. Mr. Metzger graduated in 1989 with highest honors from the University of Illinois, receiving a B.S. in
accountancy. In 1995, he graduated with distinction from Northwestern Universitys J.L. Kellogg Graduate School of Management,
receiving an M.B.A. in finance and strategy. He is a Certified Public Accountant.
rmetzger@williamblair.com
+1 312 364 8517
J.P. Young, Managing Director, is a member of the financial services industry group, where he focuses on the corporate finance needs
of banks, broker-dealers, and specialty finance companies. Mr. Young joined William Blairs investment banking group in 2009 from
Macquarie Capital and began his investment banking career in 2000 at Piper Jaffray. He has extensive experience providing M&A
advisory services and raising public and private-equity capital for clients. Mr. Young received a B.S. from Lehigh University and an M.S.
from the University of Chicago.
jyoung@williamblair.com
+1 312 364 8160
Kegan Greene, Vice President, joined William Blair in 2010. Before joining William Blair, Mr. Greene worked at Babcock & Brown,
Goldman Sachs, and Deloittes transaction services department. He holds an M.B.A. in finance and entrepreneurship from the
University of Chicago, a J.D. from DePaul University, and a B.A. in English from DePauw University.
kgreene@williamblair.com
+1 312 364 8113

Investment Banking Team Biographies 17
William Blair
Select William Blair Transactions

$27,500,000
158,000,000
$70,000,000
$100,000,000
$29,000,000
$76,475,000
has been acquired by

Direct Unsecured Notes
Arrow Global
Senior Notes
Senior Unsecured Notes
Follow-on Offering
Follow-on Offering
$1,285,000,000
Not Disclosed
$60,000,000
$151,800,000
$161,000,000
$66,815,000
Milestone Partners
Debt Placement
Follow-on Offering
Convertible Bond Offering
Follow-on Offering
$100,000,000
Not Disclosed
$50,000,000
Not Disclosed
$34,000,000

Portfolio Recovery
Associates
Not Disclosed
NORTH STATE ACCEPTANCE
has been recapitalized by
has acquired
Pine Tree Equity

Management
Senior Credit Facility

Debt Placement
Persian Acceptance
Corporation
$287,500,000
$75,000,000
$18,750,000
has acquired
Follow-on Offering
$438,600,000
Initial Public Offering
$51,000,000
525,000,000
Convertible Senior,
Unsecured Notes
Follow-on Offering
Junior Unsecured
Notes
$42,000,000
$78,000,000
$92,000,010
$97,980,000
$35,000,000
$75,000,000
Baby Bond Offering
Follow-on Offering
Follow-on Offering
Senior Subordinated Notes

Preferred Equity
$125,000,000
$230,000,000
$74,000,000
Not Disclosed
$30,000,000
$102,212,920
Senior Secured Credit

Facility
Convertible Offering
Senior Credit Facility &

Subordinated Notes
Manheim
Second Lien Loan
$75,469,000
188,893,000
$228,433,000
$15,000,000
28,000,000
$271,860,000
CFSI
COLLINS FINANCIAL SERVICES, INC.
INNOVATION
Follow-on Offering
Follow-on Offering

18 Select William Blair Transactions
Follow-on Offering
COMPLIANCE
INTEGRITY
Second Lien
Term Loan
has sold a
minority stake to
Investcorp
Follow-on Offering
William Blair
Notes

Notes 19
William Blair
Disclosures
William Blair is a trade name for William Blair & Company, L.L.C. and William Blair International, Limited. William Blair & Company, L.L.C., is a Delaware company and is regulated by the Securities and
Exchange Commission, The Financial Industry Regulatory Authority, and other principal exchanges. William Blair International Limited is authorised and regulated by the Financial Conduct Authority
("FCA") in the United Kingdom. William Blair & Company only offers products and services where it is permitted to do so. Some of these products and services are only offered to persons or
institutions situated within the United States and are not offered to persons or institutions outside of the United States.
This material has been approved for distribution in the United Kingdom by William Blair International Limited, Regulated by the Financial Conduct Authority (FCA), and is directed only at, and is only
made available to, persons falling within COB 3.5 and 3.6 of the FCA Handbook (being Eligible Counterparties and Professional Clients). This Document is not to be distributed or passed on to any
Retail Clients. No persons other than persons to whom this document is directed should rely on it or its contents or use it as the basis to make an investment decision.
William Blair & Company | 222 West Adams Street | Chicago, Illinois 60606 | +1 312 236 1600 | williamblair.com

20 Disclosures
March 18, 2014
About William Blair

Investment Banking
William Blairs investment banking group combines significant transaction experience,

rich industry knowledge, and deep relationships to deliver successful advisory and
financing solutions to our global base of corporate clients. We serve both publicly traded
and privately held companies, executing mergers and acquisitions, growth financing,
financial restructuring, and general advisory projects. This comprehensive suite of
services allows us to be a long-term partner to our clients as they grow and evolve.
From 2010-2014, the investment banking group completed more than 330 merger-andacquisition transactions worth $73 billion in value, involving parties in 36 countries and
five continents, was an underwriter on more than 20% of all U.S. initial public offerings,
and raised nearly $100 billion in public and private financing.

Special Finance

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March 2015

Specialty Finance Industry Insights

Summary of M&A Activity

Specialty Finance Industry Insights

Consumer Specialty Finance

Historical Transaction Volume

Historical Transaction Dollar Volume ($ in millions)

LTM Net Income Multiple Breakdown

Greater than 10.0x

Source: SNL Financial and William Blairs market analysis.

Specialty Finance Industry Insights

LTM Book Value Multiple Breakdown

LTM Net Income Multiple by Transaction Size

Greater than 3.00x

Less than 1.50x

LTM Book Value Multiple by Transaction Size

Select M&A Transactions

Buyer Name / Target Name

The J.G. Wentworth Company/ Weststar Mortgage, Inc.

Investor group/ FBC Mortgage, LLC

Springleaf Holdings, LLC/ OneMain Financial Holdings, Inc.

New Residential Investment Corp./ Home Loan Servicing Solutions, Ltd.

Cerberus Capital Management, L.P./ Gescobro Collection Services

Cherry Hill Mortgage Investment Corporation/ Aurora Financial Group, Inc.

Wilshire Bancorp, Inc./ Bank of Manhattan's mortgage lending division

Paragon Financial Resources/ Houston Capital Mortgage, Inc.

Citizens Financial Corp./ Reliance Mortgage Company

Impac Mortgage Holdings, Inc./ Mortgage operations of CashCall, Inc.

Academy Mortgage Corporation/ Republic Mortgage Home Loans, LLC

Tiptree Financial Inc./ Reliance First Capital, LLC

Nishi-Nippon City Bank, Ltd./ Nishi-Nippon Credit Guarantee Co., Ltd.

loanDepot.com LLC/ Mortgage Master, Inc.

Bankers Bancorp of Oklahoma, Inc./ Advance Mortgage Corporation

Morrison Grove Capital Advisors/ MMA Financial TC LLC

Arrow Global Group PLC/ Capquest Group Limited

Banco Santander SA/ Carfinco Financial Group Inc.

GoldenTree Asset Management LP/ Origen Financial, Inc.

Mint Leasing, Inc./ Investment Capital Fund Group, LLC

First Cash Financial Services, Inc./ CAMex Holding, LLC

Encore Capital Group, Inc./ Atlantic Credit & Finance, Inc.

MutualFirst Financial, Inc./ Summit Mortgage, Inc.

Strategic Growth Bank Inc./ Guardian Mortgage Company, Inc.

LendingClub Corporation/ Springstone Financial LLC

Aaron's/ Progressive Finance Holdings

Nelnet, Inc./ Education Lending Services, Inc.

Sunset Brands, Inc./ MotorMax

Investor group/ Southern Trust Mortgage LLC

InterLinc Mortgage Services, LLC/ Hometown Mortgage Services, Inc.

Note: Dollar amount in millions.

Specialty Finance Industry Insights

Public Valuation Update

Public Company Valuations

Ally Financial Inc.

Consumer Portfolio Services, Inc.

America's Car-Mart Inc.

Nicholas Financial Inc.

Credit Acceptance Corp.

3-Yr CAGR Margin

Santander Consumer USA Holdings Inc. SC

Public Company Valuations

Asta Funding Inc.

Performant Financial Corporation

Encore Capital Group, Inc.