Purpose Financial, parent company to Purpose Investments, Purpose Advisor Solutions, and Purpose Innovation Labs, agreed to acquire Canada-based Thinking Capital Financial, a fintech lender to small business, for a combination of cash and securities.
The transaction builds on Purpose Financial’s objective of driving innovation in financial services and represents a key milestone in its growth strategy. In addition, the combination of direct originations with asset management offers the potential to create unique investment products.
“Purpose Financial has an unrelenting focus on building innovative, technology-driven financial solutions,” said Som Seif, chief executive officer of Purpose Financial. “Thinking Capital is a clear leader in the small-to-medium-sized (SME) business lending space, with credit adjudication technology and presence that are unmatched in the Canadian market. This acquisition brings together leading origination, asset management, and technology platforms as a unified entity, and enables us to bolster our product capabilities and optimize the technology, distribution, and funding model of our combined business.”
Since the company’s inception in 2006, Thinking Capital has increased the size of the addressable market for SME credit by delivering more than $750 million in incremental funding to main street-style businesses.
Following the transaction, Thinking Capital will retain its headquarters in Montreal and all employees will remain with the company. CEO Jeff Mitelman will become a managing partner at Purpose Financial and will retain a meaningful equity position in Purpose Financial alongside existing investor TorQuest and Thinking Capital’s management.
Purpose Financial is an independent financial services company with a focus on customer-centric innovation, delivered through technology-driven solutions and aimed at addressing historically underserved segments of the market.
