Warburg Pincus is exploring a potential sale of subprime auto lender Exeter Finance in a deal that could value the business between $2.5bn and $3bn, according to Bloomberg. The private equity firm is working with advisers to identify potential buyers as part of its strategic options review. An IPO is also under consideration as an alternative exit route.

Discussions remain preliminary, with no final decision made. Warburg Pincus could still retain ownership of Exeter Finance, which operates in the US auto lending market providing financing to consumers with lower credit scores. The company works with more than 15,000 dealerships and serves over 650,000 customers.

Warburg Pincus acquired Exeter Finance in 2021 from Blackstone, positioning the investment within its broader financial services strategy. The potential sale highlights ongoing private equity activity in credit and specialty finance, where firms continue to explore exit options amid evolving market conditions.