Fintech lender LendingPoint increased its mezzanine financing to $52.5 million. Paragon Outcomes Management provided the funding.
The upsize continues to build the relationship between Paragon and LendingPoint, which started with their first $20 million mezzanine credit facility in January 2017, along with an upsize on said facility just seven months later.
The credit facility provides advance rate enhancement with LendingPoint’s other credit facilities for more efficient equity usage while also providing swingline support. The company can more efficiently manage its equity by warehouse financing its originations before selling them into its senior credit facilities and optimize line utilization and portfolio balancing between the facilities.
“We are delighted by the continued show of confidence from our friends at Paragon Outcomes,” said Tom Burnside, LendingPoint co-founder and CEO. “Their support has been critical as we grow our origination volume and balance sheet, and march towards profitability next year. We’re proud that LendingPoint’s performance to date means companies like Paragon Outcomes want to be part of our future.”
“We continue to be impressed with the performance of the LendingPoint team,” said Frank Tripoli, Managing Partner and Chief Investment Officer at Paragon. “When we met them they told us they were a ‘credit first’ company and everything we have seen them do since continues to validate that description. We look forward to LendingPoint’s continued success and being a part of the LendingPoint story as it unfolds.”
LendingPoint uses proprietary risk models to paint a more complete financial picture for customers and approve loans for people who otherwise may be overlooked by traditional FICO results. It has closed more than $1 billion dollars’ worth of senior credit financing in less than one year.
Founded in 2009 and based in New York City, Paragon Outcomes Management is an SEC-registered private investment firm which invests across the capital structure emphasizing capital preservation and cash yield.
