Palogic Value Fund Urges OpenLending (LPRO) to Explore Strategic Alternatives

Market Cap: $110 million | Open Lending Corporation provides lending enablement and risk analytics solutions to credit unions, regional banks, finance companies, and captive finance companies of automakers in the United States.  

On April 14, 2025, Palogic Value Fund (5.8%) expressed concern over the company’s recent performance and strategic direction. Despite being impressed by its ecosystem, Palogic raised issues with executive turnover, noting the appointment of a third CEO in over a year, and questions why an external candidate wasn’t chosen. The fund also critiqued the limited market opportunity for OpenLending’s LPP product, which now mainly relies on credit unions rather than OEMs. Furthermore, Palogic highlighted concerns about the company's cyclicality, recent drastic stock price declines, and board composition, questioning the involvement of private equity-backed board members in a low-value public company. Palogic urged the board to consider strategic alternatives, including a potential sale, pay off the term loan, and protect cash if no buyer is found, while working to improve business operations and shareholder value. Source