Quantum Fund Buys 25% of AutoFinance Group
Quantum Fund N.V., an investment concern controlled by renowned New York money manager George Soros, has acquired 25% of AutoFinance Group Inc., a Burbank company that funds consumer auto loans for car dealers in California and New Mexico.
Quantum, a Dutch-based fund that has about $2 billion in assets, bought the 1.67 million shares from AutoFinance for $5 million cash, or $2.99 a share. AutoFinance’s stock, which is listed on the Boston Stock Exchange, lately has traded at $3.25 a share.
The companies said Quantum now has the right to elect two people to AutoFinance’s board of directors, which currently has 10 members.
AutoFinance was started in June, 1988, and last August it merged with Vitalmetrics, a San Diego shell company, said Blair Nance, AutoFinance’s chief financial officer. AutoFinance approached Quantum Fund about making the investment to help provide the cash that AutoFinance needs for next year, he said.