Warburg Pincus to Acquire ECN Capital in C$1.9B All-Cash Deal 

Warburg Pincus has agreed to acquire ECN Capital in an all-cash transaction valuing the Toronto-based specialty finance company at approximately C$1.9 billion (US$1.4 billion).  

ECN Capital, formed in 2016 following its spinoff from Element Financial, manages $7.6 billion in assets and provides credit origination, management, and advisory services to a broad base of North American financial institutions, including banks, insurance companies, pension funds, and credit unions.  

The firm specializes in manufactured housing, recreational vehicle and marine loans, as well as commercial floor plans and rental financing. Over the past year, ECN subsidiaries Source One Financial Services and Triad Financial Services launched notable partnerships with Monroe Capital to originate and purchase RV, marine, and manufactured home community loans, with initial transaction pools valued at $300 million and $250 million, respectively. 

“To date, we have delivered shareholder returns of over 200%, and this transaction creates a liquidity event and provides a further return of capital opportunity for our shareholders,” said Steven Hudson, CEO of ECN Capital. 

Under the agreement, shareholders will receive C$3.10 (US$2.21) per share, a 13% premium to ECN Capital’s closing price of C$2.75 (US$1.96) on November 12. The acquisition is expected to close in the first half of 2026, subject to customary approvals. 

CIBC Capital Markets served as lead financial advisor to ECN, with RBC Capital Markets also advising. Legal counsel to the company included Blake, Cassels & Graydon LLP and Baker & Hostetler LLP. Warburg Pincus was advised by Macquarie Capital, BMO Capital Markets, and Truist Securities, with legal support from Stikeman Elliott LLP, Wachtell, Lipton, Rosen & Katz, Paul, Weiss, Rifkind, Wharton & Garrison LLP, and Mayer Brown LLP.