By Guglielmo de Stefano on 17th December 2015
New deal comes just weeks after Victory Park Capital announces a $175 million asset-backed securitization of unsecured loans originated by Avant.
US based asset manager Victory Park Capital (VPC) has recently announced the successful closure of a $108 million asset-backed securitisation deal with zipMoney Limited, an Australian digital retail finance provider. The funding will allow the online platform to accelerate its merchant acquisition strategy and will provide it with the necessary funding capacity to support the growth in its consumer finance book.
zipMoney offers point-of-sale credit, digital payment services and real-time credit to customers in the retail, education, health and travel industries. The platform appears to be designed exclusively to enhance users’ shopping and payment experience and people can apply for a digital line of credit in just a few minutes.
Larry Diamond, managing director and CEO of zipMoney, commented on the deal:
“This is a major step forward for zipMoney. Having access to such a substantial warehouse facility allows us to accelerate our merchant discussions and compete head to head with the major incumbents. There are now no barriers to on-boarding enterprise merchants across zipMoney’s target markets.”
Under the deal zipMoney has established zipMoney Trust 2015-1, with three different classes of unrated notes issued by Perpetual Corporate Trustee Limited, the prices of which have not been disclosed yet. The facility has been established with the transfer of $7 million of current loan receivables from zipMoney balance sheet to Perpetual.
In addition to the credit facility, VPC is planning to run other deals with the platform. Indeed, the asset manager will subscribe for five million fully paid shares in zipMoney to raise $1 million and it will also receive five million options exercisable at 20 cents each expiring on 31 December 2018.
Mr. Diamond added:
“We are delighted to have VPC as a strategic partner and shareholder in our business. They are renowned specialists in the international FinTech sector and have worked with most of the major lending platforms across the globe. We look forward to working closely with VPC.”
Victory Park Capital seems determined to gain a global exposure. Since 2010, it has made more than $2.2 billion of investments and commitments across a number of financial technology platforms, geographies and products.
Last February, VPC committed $420 million to Funding Circle US and UK and just few weeks ago, it announced a $175 million asset-backed securitization of unsecured loans originated by Avant. The company has existing relationships also with other platforms, including the like of Assetz Capital, Borro, OnDeck Capital and Upstart.
AltFi is returning to Amsterdam for its second annual Summit in the city. The inaugural event last year was a roaring success, with key figures from across Continental Europe's alternative finance and digital banking sectors highlighted. These included Jeroen Broekema, managing director of Funding Circle Netherlands, and Mieke van Engelen, head of innovative partnerships at ABN AMRO's standalone lending platform, New10.