Cap Accel, a merchant bank and advisory firm for the marketplace lending industry, has announced its launch.
Cap Accel has spotted a gap in the market for an ‘accelerator’ company- one that is dedicated to helping alternative finance platforms get access to diverse sources of capital. The Cap Accel team are highly experienced and have previously raised over $1 billion in funding for existing marketplace lenders. Interestingly, both of the managing partners of the firm have previous experience in the alternative finance industry. Both Jae Lim and Chris Lalli were co-heads of capital markets at SoFi.
Investment in Cap Accel was led by Valley Next Gen Ventures LLC. Other investors included George W. Wellde Jr., formerly Vice Chairman of the Securities Division at Goldman Sachs and currently Director on the Board of Fortress Investment Group LLC, and Barney Schauble, Managing Partner of Nephila Advisors LLC.
Jae Lim, Cap Accel Managing Partner, commented on the launch:
“Traditional players are becoming acutely aware of how new trends in financial services are transforming their industry and are eager for opportunities to connect with innovative lenders. We are thrilled to use our extensive relationships to enable partnerships between marketplace lenders and diverse sources of institutional capital.”
Chris Lalli, Cap Accel Managing Partner, added:
“Access to capital markets is essential for marketplace lenders to scale and fund more loans, but connecting with institutional partners can be challenging for companies who haven’t raised this type of funding before. Cap Accel has the proven experience and credentials to help navigate, manage and accelerate this process.”
The services that Cap Accel can provide include: pre-capital raise due diligence reviews, capital raising, ongoing capital markets advisory and business development. Its capital raising expertise covers term, permanent, debt or equity funding tailored to suit the needs and business models of each company.
The launch of Cap Accel is yet another indication of the strength of the alternative finance market. The ecosystem of companies dedicated to servicing the space is growing at a rate comparable to some of the most successful platforms.