Victory Park Capital, a global alternative investment firm specializing in private credit, closed a refinancing agreement for a $225 million debt facility with Zip Co Limited, a global leader in the digital retail finance and payments industries. The transaction will support the growth of Zip’s U.S. receivables.
As the third transaction between Zip and VPC, the new debt facility represents an extension of their long-standing relationship. The two companies began their partnership in 2015 with a A$108 million ($71.1 million) asset-backed warehouse facility that later grew to A$200 million ($131.7 million). In 2020, VPC and Zip closed a A$100 million ($65.8 million) debt facility to fund receivables and support the Zip Business platform.
“We are thrilled to announce our renewed collaboration with VPC, a cornerstone investor in Zip since our early days. This pivotal transaction marks a significant step in bolstering Zip’s expansion within the U.S. market,” Larry Diamond, co-founder and U.S. CEO of Zip, said. “As we refine and broaden our portfolio of consumer financing solutions¹, the three-year deal provides us with both the strategic timing and the flexibility needed to spearhead innovation in both our new and existing product lines. This partnership not only underscores our shared vision for market leadership but also cements our commitment to delivering unparalleled financial products to our American customers.”
“Having partnered with Zip since its early innings as a company, VPC has borne witness to its transformative growth over the past several years,” Jason Brown, partner at VPC, said. “The company’s innovative payment solutions have provided flexibility and ease to consumers and businesses worldwide. We are excited to extend our partnership and continue supporting the company as it focuses on ongoing profitable growth.”
