Private investment firm BharCap Partners has acquired Red Oak Inventory Finance, an inventory financing solutions provider, from ECN Capital.

The financial terms of the deal were not disclosed.

Based in the US, Red Oak Inventory Finance focuses on offering floorplan finance solutions to manufacturers and dealers across various asset classes.

The firm delivers solutions designed to the specific requirements of businesses across the recreational vehicle (RV), marine, and trailer industries.

Besides, Red Oak Inventory Finance provides tailored financial solutions with an aim to enhance growth, streamline inventory management, and boost cash flow.

Red Oak Inventory Finance CEO Jeff Collins said: “This exciting transition marks a significant milestone in our evolution and positions us incredibly well to further enhance the Red Oak customer experience. 

“We view our alignment with BharCap as an incredible opportunity to deepen strategic relationships, cultivate our customer-centric culture, and to serve our markets with unparalleled effectiveness.”

Through the acquisition, BharCap Partners aims to bring together its comprehensive resources and industry insights and Red Oak Inventory Finance’s expertise and partnership to help clients with the best suite of services designed to address their specific needs.

BharCap Partners said that the collaboration facilitates opportunities for optimised processes, improved efficiency, and innovative financial products.

It will enable businesses to streamline their inventory management and power sustainable growth.

BharCap Partners co-founder and partner Ethan Wang said: “We are excited to partner with the Red Oak team. They are passionate about the markets they serve and keenly focused on facilitating the success of their partners.

“Our successful history of executing complex corporate carve-out transactions and extensive experience in financial services proved to be a differentiating factor for both the seller and management.”

BharCap Partners, which specialises in investing in the financial services industry, oversees more than $2.2bn of capital across 11 investments.