IRVINE, Calif. -- (BUSINESS WIRE) -- Cove Financial Group Inc., a privately held company headquartered in Irvine, California (“Cove”), announced today the closing of a $10.4 million Series A Preferred Stock issuance and Convertible Debt transaction led by an affiliate of Jacobs Asset Management, LLC (“JAM”), a New York based money manager. Proceeds will be used to grow its Mortgage Alternative Program (“MAP”) and launch its unique digital marketing platform.
For consumers who are in the process of financial recovery and seeking to buy a home, Cove’s Mortgage Alternative Program removes the largest roadblock to regaining their dream. Cove created MAP for would be buyers who have a deposit to put down on a home but who do not currently qualify for a traditional home mortgage. MAP is an innovative program that allows them to get into a home today while they work to qualify for a traditional home loan in the future.
Additionally, Cove’s MAP is supported by an industry-leading digital marketing platform that continuously learns what financial products and services are needed by this important consumer audience. Combining multi-channel advertising delivery with robust audience analysis and extended customer relations management capabilities, Cove’s platform is powering a growing network of partners offering a variety of products and services to serve this consumer in real-time.
“We are excited to continue our mission of helping people get on the path to homeownership with our innovative Mortgage Alternative Program,” said Chief Executive Officer, Patrick Flanagan.
“JAM has a successful history of investing in financial services companies that have a technology advantage. JAM’s strategic capital coupled with Cove’s highly skilled and experienced team positions us for dynamic growth,” stated Mr. Flanagan.
“We are excited to partner with the exceptional management team assembled at Cove,” said Mike Sekits, Director of Private Equity at JAM. “They have many years of experience helping people become home owners in evolving economic environments. The company's combination of an innovative financial product, operational expertise and technology-driven lead generation capabilities is powerful. We look forward to working closely with the Cove team to grow this business.”
About Cove Financial Group Inc.
Established in 2012 and based in Irvine, California, Cove has deep expertise in the financial, real estate, technology and pharmaceutical industries. The Cove team is passionate about transforming homeownership. Cove is not a mortgage lender and does not offer settlement services. MAP is currently offered in California, Arizona, Texas and Washington, with more states coming soon.
Cove and JAM’s legal advisors in the transaction were O’Melveny & Myers, LLP, Dechert, LLP and BuckleySandler, LLP; with financial advisory support from Ernst & Young LLP.