CHICAGO–(BUSINESS WIRE)–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.”
About LendUp
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 is a privately held registered investment advisor
dedicated to alternative investing through the management of private
investment funds. As specialists in non-traditional investments, VPC
focuses on niche credit and private equity opportunities in both
distressed and improving middle market companies across a diversified
range of industries. Whether as a lender or a control investor, VPC
seeks to identify opportunities where it believes the potential for
reward outweighs the risks entailed. Founded in 2007, VPC is
headquartered in Chicago with additional resources in Boston, New York
and San Francisco. http://bit.ly/1nUEiHh.
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