Wingspire Capital Holdings has provided a $40 million commitment to XL Funding, LLC, a wholly-owned subsidiary of the XLerate Group.

XL Funding provides floorplan loans to auto dealers in more than a dozen markets, and will use the funding to refinance a previous bank loan and extend capital to more small and medium-sized dealers in populous states including California, Texas and Florida.

Wingspire was attracted to XL Funding’s position of strength as consumers pursue affordable pre-owned automobiles amid the uncertain economy and a desire for “private” transportation during the coronavirus pandemic.

They also admired the way that XL Funding’s leadership team took strategic and proactive steps during the pandemic, such as assisting dealership customers in navigating government programs such as the Paycheck Protection Program and other Small Business Administration loans.

“Wingspire is pleased to support an experienced leadership team with a successful track record of profitably growing portfolios while also following sound financial reporting policies and controls,” said John Rosin, President and COO of Wingspire Capital.

Wingspire’s financial support allows XL Funding to deploy more capital to dealers who are seeing strong retail demand as people begin to return to offices, job sites, schools, retailers and other places. XL Funding, which is backed by Huron Capital Partners in Detroit, also benefits from synergistic ties to the growing auction footprint of the XLerate Group.

“This financing will enable our business to expand strategically into new markets in a thoughtful and purposeful way while also letting us remain nimble and responsive to the needs of our existing customers,” said Joel Garcia, President of XL Funding.

Capstone Headwaters advised XL Funding on the transaction.