AvantCredit Secures $75 Million Series C Funding Led by Tiger Global Management and $200 Million Credit Facility Funding to Fuel Continued Consumer Loan Portfolio Growth and Hiring Strategy for Top Talent
CHICAGO, July 23, 2014 /PRNewswire/ -- AvantCredit, the fastest growing national online provider of consumer loans, announced today the completion of a $75 million round of Series C funding led by Tiger Global Management and a $200 million credit facility led by Victory Park Capital. The funding, which brings the company's total equity raised and debt committed to more than $300 million, will be used to support the high-trajectory growth of its loan portfolio, expand its technology and data capabilities and continue attracting and cultivating top talent.
"AvantCredit's tremendous growth in just under two years is a reflection of consumer demand for a better, faster, more convenient borrowing experience," said AvantCredit's chief executive officer Al Goldstein. "This additional infusion of capital validates the success of our business model and will enable us to continue to innovate and enhance our technology – and attract the best and brightest data engineers in tech today."
Subsequent to its contributions to AvantCredit's Series B funding in August 2013, Victory Park Capital is joined by Tiger Global, a premier private equity firm and a market leader in technology growth equity investing. Since its Series B funding in August of 2013, AvantCredit has increased its quarterly loan volume by more than 500 percent, enabling it to grow from 70 to more than 300 employees.
To support its mission of becoming the leading online consumer lending platform, AvantCredit plans to use this capital to hire additional developers and data scientists to enhance automation, continue to optimize underwriting, and expand the product offering. Once these enhancements are implemented, the verification processes will become fully automated - minimizing loan default risk to reduce the overall cost of borrowing for its customers.
The Series C funding coincides with the company's $200 million credit facility, which will enable AvantCredit to expand its loan portfolio further by increasing investment in customer acquisition activities. Led by the company's longtime supporter, Victory Park Capital, this transaction is critical for the support of AvantCredit's growth and product expansion to meet customer needs.
"We've backed AvantCredit's mission from the very beginning and we're excited to expand our role with this latest transaction," said Brendan Carroll, partner at Victory Park Capital. "With each new round of funding, AvantCredit continues its revolutionary disruption of the personal loan industry with its passionate team, industry-leading analytics and personalized online approach to borrowing."
The company supplies personal loans between $1,000 and $20,000 to qualified borrowers in nearly all 50 states and is designed for customers looking for a competitive rate and a streamlined, easy, online approval process. Loan amounts and APR are tailored for each customer based on a variety of factors including credit score and income.
AvantCredit is changing the way online banking customers borrow money. Utilizing advanced algorithms and machine-learning capabilities, the company offers a unique and highly customized approach to the personal loan process. The combination of technology, analytics and customer service capabilities allows the company to offer an easy-to-use online process for loans to borrowers, all entirely online. Find out more at AvantCredit.com.
About Tiger Global Management
Tiger Global is a fundamentally-oriented, global investment firm. The Firm deploys capital in two businesses - private equity partnerships and public equity funds. Tiger Global's private equity partnerships have ten-year horizons and invest in growth companies in the global Internet and technology sectors. The Firm's public equity funds focus on long-term trends in the technology, telecom, media, retail and consumer sectors. Tiger Global was founded in 2001 and is based in New York.
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 credit and private equity investments, VPC focuses on 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, Los Angeles and San Francisco. For further information, visit: http://www.victoryparkcapital.com/.
Contact: Ashley Currie, 312.396.9763, Ashley.Currie@zenogroup.com