Chesswood Group Limited and Wafra Inc. announced an agreement forming a joint venture partnership between Chesswood subsidiary Pawnee Leasing Corporation and certain funds managed by Wafra. The Joint Venture will invest in equipment finance leases and loans originated by Chesswood subsidiaries Pawnee and Tandem Finance Ltd., targeting up to $1 billion in total acquisitions. Chesswood and its operating subsidiaries will service the assets on behalf of the Joint Venture.

Both Wafra Funds and Pawnee will contribute equity to the Joint Venture, with Wafra Funds owning up to 95%. In connection with the formation of the Joint Venture, Chesswood has agreed to issue to Wafra Funds warrants to purchase 2,067,250 Chesswood common shares at a $10 exercise price, subject to a vesting schedule tied to the closing of acquisitions by the Joint Venture. The Joint Venture will enable Chesswood's subsidiaries to continue growing originations to meet market demand and to evaluate new opportunities that leverage Chesswood's infrastructure and decades of experience and success in the commercial finance sector.