German credit marketplace Auxmoney said it has raised €150m in one of Europe’s largest funding rounds for a financial-technology company in 2020 so far.

The equity raise was led by US private equity firm Centerbridge Partners, which is also acquiring shares from other existing investors in Auxmoney to become the majority shareholder. Existing venture capital backers such as Foundation Capital, Index Ventures, and Union Square Ventures remain fully invested.

Auxmoney says it is the largest credit marketplace in continental Europe and chief executive, Raffael Johnen, said the company is well placed for an expected consolidation in the market.

“Particularly in times of Covid-19, this funding round is a strong signal of confidence. The capital will allow us to further expand our leading market position and capture opportunities that arise in this environment,” Johnen said.

The coronavirus pandemic has had contrasting effects for some lending marketplaces. The UK’s peer-to-peer lender RateSetter was acquired by Metro Bank for a price of up to £12m in August, having once been valued at more than £200m. Meanwhile, London-listed marketplace Funding Circle Holdings temporarily stopped taking money from individual investors in order to focus solely on distributing UK government-backed loans during the pandemic.

Source: Private Equity News

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