ECN Capital Corp. to Go Private: A $1.9 Billion Acquisition Deal Led by Warburg Pincus
ECN Capital Corp. to Be Taken Private in $1.9 Billion Deal Led by Warburg Pincus
By Barbara Shecter, Financial Post – November 13, 2025
ECN Capital Corp. is a well-known financing firm that started nearly ten years ago. It now faces a change. An investor group led by Warburg Pincus LLC will buy it with cash. The deal pays $3.10 for each common share. This price is 13% above the last closing price. The business is now valued at about $1.9 billion.
Transaction Overview and Timeline
The deal needs a few approvals. Regulators and courts must give the go-ahead. The buyout should close by mid-2026. ECN Capital’s Board of Directors supports this plan. They see few conditions. They call the terms fair for the firm and its shareholders.
Strategic Rationale Behind the Sale
Steve Hudson runs ECN Capital. He also holds seven percent of the company. He said that now is the right time to sell the remaining finance parts of the firm. These parts have grown strong. They can gain from the vast funds that large banks or big private equity teams like Warburg Pincus have.
He explained, "When a business grows this much, it helps to join a bank, an insurance firm, or a solid private equity group. They give more financial strength than a smaller company like ours."
Historical Context and Growth Strategy
Steve Hudson recalls his past at Newcourt Credit Group in the 1990s. That company had trouble funding long-term loans with short-term bills. The model did not work well. At ECN Capital, he chose a different plan.
Under his lead, ECN Capital made a smart move. In 2021, it sold its service finance unit to Truist Bank for US$2 billion. This was a sharp rise from the US$309 million price in 2017. Hudson noted that Truist has a strong capital base and a knack for financing, including selling loans to investors. This move helped the business grow beyond ECN’s own reach.
Remaining Operations and Shareholder Returns
After selling two big parts—the service finance unit and another unit to Stone Point Capital LLC—the firm now works on two areas. It focuses on financing manufactured homes, as well as recreational vehicles and marine craft. Its assets total about US$7.6 billion.
Since 2016, ECN Capital has generated more than 200% return for its shareholders. The management sees the new deal as a chance to give shareholders cash and return more funds.
Market and Industry Implications
This sale shows a trend. Mid-sized financing companies now join bigger groups. They seek the stronger funds and rapid growth that come with large financial teams. Warburg Pincus’s action shows they trust the growth of ECN Capital’s key areas.
About ECN Capital and Warburg Pincus
ECN Capital Corp. earns respect as a focused financing firm. It works mainly in niche areas like manufactured housing and recreational vehicle finance. The company has grown a lot since it split from Element Fleet Management Corp.
Warburg Pincus is a global private equity firm. It invests in growing sectors and companies. The firm brings strong resources and capital to help expand businesses.
For further updates and detailed analysis on this transaction and its impacts on the financial services sector, stay tuned to Financial Post.
Contact: Barbara Shecter at bshecter@nationalpost.com
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