PWCC secures $175 million for cash advance program
Trading card auction house PWCC Marketplace has secured $175 million in funding from WhiteHawk Capital to expand its business offering loans to customers.
PWCC – one of the largest online card brokers, which was the main trading card provider on Ebay until last year– will use the money to expand its line of loan and cash advance products to customers who use their trading cards as collateral.
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“This funding benefits the market as loans and cash advances have become an increasingly demanded offering by trading card collectors,” said Chad Fister, chief financial officer of PWCC, in an email. “Enabling our clients to access liquidity through a menu of capital offerings is essential as trading cards continue to prove a valuable tangible asset class.”
WhiteHawk is what is known as a middle market lender, providing financing to other businesses. The Los Angeles-based company has $573 million in assets under management, according to its latest regulatory filing. WhiteHawk lends across industries, including providing a $65 million senior term loan to Hall of Fame Resort & Entertainment, which is focused on developing football-themed experiences in Canton, Illinois. Ohio, and a $20 million loan to toymaker Jakks Pacific.
Currently, PWCC offers loans to customers who store their cards with the company, cash advances for auctions and one-year capital notes to fund card-secured cash advances and auction activities, funding about $50 million per month, according to a spokesperson. The company has $750 million worth of cards stored in its vault. The collectibles market is booming especially since the start of the pandemic. PWCC says its broadest market index, the PWCC 500, has risen 902% since January 2008.
Investment bank DA Davidson served as financial advisor to PWCC in connection with the WhiteHawk deal, PWCC said in a press release.
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