Victory Park Finances Funding Circle Loans
Funding Circle announced that Victory Park Capital will finance up to $420 million in loans to small businesses originated through Funding Circle both in the UK and U.S. over the next three years.
This new, long-term agreement, which significantly extends the existing relationship between Funding Circle and Victory Park Capital, will allow Funding Circle to provide a much needed further injection of funding into the small business sector and reflects the strong growth of Funding Circle globally over the past twelve months. Funding Circle has now facilitated more than $850 million in loans to 8,000 small businesses globally.
Victory Park Capital has been actively involved in the marketplace lending sector since 2010 and has made more than US$2.2 billion of investments and commitments across a number of financial technology platforms, multiple geographies (US, UK and Europe), products (consumer and business) and structures (whole loans and senior credit facilities).
The investment combines cutting-edge technology with market leading financial solutions. Victory Park Capital was an early institutional partner to Funding Circle in the US and this new funding will be invested across all risk bands, in accordance with Funding Circle’s industry-leading credit criteria.
Gordon Watson, principal of Victory Park Capital, commented “Funding Circle has experienced tremendous growth over the past year and we are pleased to expand our on-going partnership to both sides of the Atlantic. With this additional lending facility, Funding Circle will be well-positioned to continue to disrupt the traditional banking model through 2015 and beyond.”
Samir Desai, CEO and co-founder of Funding Circle, added, “We’re pleased to be welcoming additional new financing to the marketplace, which will further support small businesses. Today’s news is a significant step on our journey to creating the global infrastructure where any investor, big or small, can lend to creditworthy small businesses looking to grow.”
Sachin Patel, head of UK Capital Markets at Funding Circle, said “Partnering with Victory Park both in the UK and US is testament to our proven track record in facilitating loans with attractive yields and consistent credit performance. Funding Circle is opening up an asset class to investors that has previously only been available to high street banks.”