EPF is tiny at $40M market cap so we have not followed it too closely. It has a very short public history, not much cash, low (historical) revenue, losses and nil cash flow. Insiders own 20%. As an alternative lender, it does face lots of competition and is sensitive to both interest rates and the economy. It did report $9.7M in revenue for the Q4, up 107% from a small base. It is off to a good start, and its two acquisitions last year are working out so far. It has seen some executive turnover, including the CFO. The growth is impressive so far, but there remain too many risks here for us to endorse it strongly. We would like to see how its credit quality fares in a different economic backdrop. Its high growth rate is likely not sustainable, and we would expect more acquisitions. We think it will need more capital, and there will be time to buy this later when it has a longer history as a public company.
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