by Structured Settlement Watchdog
Novation Capital, a settlement purchaser led by CEO Robin Shapiro, has not been acquired by York Capital, a New York City hedge fund as an article in Asset Backed Report suggests. The trade journal recently reported, inaccurately according to Mr. Shapiro, that such a deal happened in July 2013 and York had acquired Novation Capital for $15 million.
Actually, the York investment occurred a year ago (August, 2012), not last month. The investor was York's private equity arm, not the so-called hedge fund. The amount invested was $30 million (not $15 million). All the money invested stayed in the Company and has been earmarked to finance growth. Thus, the transaction was not a liquidity event for the original owners who continue to actively manage and own a significant stake in Novation.
Robin Shapiro is a former president of the National Asssocaition of Settlement Purchasers.