J.C. Flowers has reached an agreement to sell Island Finance, Puerto Rico’s largest non-bank consumer financial institution, to VRM Penzini Capital. The deal marks one of the most notable financial services transactions in Puerto Rico this year and is expected to close in December 2025. Financial terms were not disclosed.
Island Finance, founded in 1959, has grown into a dominant consumer finance provider with nearly 500 employees across 47 branches. The company serves Puerto Rican consumers with personal loans intended for everyday needs such as home improvement, repairs, education, travel, and unexpected expenses. Under its new ownership, Island Finance is expected to maintain its community-driven mission while expanding its offerings.
J.C. Flowers noted that Island Finance has undergone a significant transformation during its ownership period, including navigating its separation from Grupo Santander, completing a landmark asset-backed securities transaction backed exclusively by Puerto Rico consumer loans, and developing proprietary credit scoring tools tailored to the Puerto Rican market.
VRM Penzini Capital views the acquisition as a long-term strategic investment in Puerto Rico’s financial infrastructure. By working with Island Finance’s leadership team, the firm aims to strengthen the lender’s reach, accelerate innovation, and expand access to consumer credit across the island.
Leadership at both organizations expressed confidence that the transaction will help Island Finance continue to deliver personalized customer service and support families in achieving financial goals.
KEY QUOTES
“We are grateful to have had the opportunity to partner with CEO Jeanette Villamil and the outstanding management team of Island Finance. We are proud to have had the opportunity to guide Island Finance through this recent chapter in its history of growth, consistent profitability and innovation. It has been an honor to help position Island Finance to serve the people of Puerto Rico long into the future.”
Thomas Harding, Managing Director, J.C. Flowers
“We would like to thank J.C. Flowers for helping us navigate our transformation, including separating from Grupo Santander and becoming an independent company, executing the first ABS transaction backed entirely by consumer loans originated in Puerto Rico, and using our own credit data to develop proprietary score cards for the Puerto Rican consumer. We are pleased to be joining VRM Penzini Capital, which shares our strong customer-focused commitment and community-driven approach, as we embark on this exciting new chapter and look to offer additional opportunities for our customers, employees and stakeholders. As a community-based lender, Island Finance will always strive to offer our customers the highest level of service and help Puerto Rican families find the right loan solution to reach their financial goals.”
Jeanette Villamil, CEO, Island Finance
“We are truly excited to welcome Island Finance into our portfolio. Island Finance is an iconic Puerto Rican institution that has supported families across the island for generations, and we are committed to building on that legacy. We look forward to partnering with Jeanette Villamil and her world-class management team to continue serving the everyday financial needs of Puerto Rican families while enhancing innovation, access, and customer experience. This acquisition reflects our long-term commitment to Puerto Rico and expands our growing investments dedicated to strengthening the island’s economic future.”
Carlos Penzini, Managing Partner, VRM Penzini Capital
