Victory Park Capital Provides Credit Facility to LendUp
May 05, 2014
CHICAGO – Victory Park Capital (VPC), an asset management firm focused on middle-market debt and equity investments, today announced that it has provided a $50 million credit facility to LendUp, a direct lender focused on non-prime borrowers.
The facility will support LendUp’s expansion into new geographical markets across the U.S. Launched in 2012, the company has been growing at a rate of 10-20 percent month-on-month. This year, LendUp plans to launch in a new state every two weeks and expects to originate approximately 300,000 loans.
LendUp provides a safe alternative for underserved customers seeking small-dollar credit products. Using a “borrower friendly” approach, LendUp strives to help those with limited financial alternatives. Borrowers not only benefit from free credit education courses, but also from more attractive loan terms as they move up the “LendUp Ladder.” LendUp rewards customers with points for repaying their loan on time and for taking credit education courses; the more points a customer has, the lower the rate.
“VPC is pleased to partner with LendUp as it continues to enhance its technology platform to meet the needs of non-prime borrowers across the U.S.,” said Brendan Carroll, co-founder and partner at Victory Park Capital. “We believe LendUp is well positioned to continue providing innovative short-term credit alternatives to an underserved customer base and are excited to help the business grow.”
Sasha Orloff, co-founder and chief executive officer of LendUp, added, “We are excited to announce this partnership with a team as experienced in this sector as VPC. This lending facility will go toward serving the continued need for capital by our customers, as well as allow us to expand our product into new markets for individuals that lack the credit score needed to receive a loan from conventional sources.”
LendUp is a socially responsible lender that offers a safe alternative to consumers that banks and credit unions decline. The LendUp Ladder changes the dynamics of the small dollar loan: rather than being a dangerous first step into a cycle of debt, it becomes an opportunity to learn good financial behavior and to build credit through education, gamification and a transparent fee structure. LendUp is located in downtown San Francisco and is backed by prominent Silicon Valley investors such as Y-Combinator, Google Ventures, Kleiner Perkins, Andreessen Horowitz Seed Fund, Thomvest Ventures, among other highly regarded angels and entrepreneurs.
About Victory Park Capital
Victory Park Capital Advisors, LLC (“VPC”) is a privately held, SEC-registered, global alternative investment firm. VPC provides opportunistic capital solutions to both emerging and established businesses with an expertise investing across various sectors where traditional sources of capital are limited. The firm’s differentiated offerings leverage an extensive network of industry relationships, disciplined deal origination, creative financing capabilities and broad credit structuring and special situations expertise. The firm was founded in 2007 and is headquartered in Chicago with additional offices in New York, Los Angeles and San Francisco. For more information, please visit www.victoryparkcapital.com.