LendingPoint, a financial technology platform, today announced a $125 million preferred equity investment from Warburg Pincus, a leading global private equity firm focused on growth investing.
LendingPoint will use the proceeds to expand its financing solutions for its ecommerce, point of sale, and financial institution partners and further enhance its data and technology platform.
The company uses data, technology, and a scalable platform to deliver installment loan options to consumers and small business owners who have requested financial solutions directly or through thousands of merchant partnerships and integrated ecommerce platforms. From its first loan in 2015, through December 2020, LendingPoint has originated over $2.5 billion.
“We continue to build our platform to provide world class financing and white label solutions,” said Tom Burnside, CEO & Co-Founder, LendingPoint. “We are thrilled to partner with Warburg Pincus as we continue to make the investments in data science and technology to better serve our customers.”
Juan E. Tavares, Chief Strategy Officer & Co-Founder of LendingPoint continued, “As we refine and extend our product offerings, our new partnership with Warburg Pincus will help us fulfill our goal of creating a new category in financial services.”
Warburg Pincus has invested over $11 billion across the full spectrum of the financial services landscape, including insurance, banking, asset management, specialty finance, payments, and transaction processing. Together with the Warburg Pincus investment, LendingPoint has raised more than $325 million of equity to date.
“LendingPoint’s unique use of data and technology and best-in-class lending platform has enabled it to scale rapidly by providing financial solutions and superior service to its expanding customer base,” said Eric Friedman, Managing Director, Warburg Pincus. “We believe LendingPoint has substantial opportunities for continued growth and are excited to partner with Tom and his management team to execute on these opportunities, invest in new capabilities, and support their customers.”
The Warburg Pincus investment follows an impressive 2020 for LendingPoint, who ended the year profitable, closed its 10th securitization transaction, launched its SDKn platform, enhanced its point-of-sale merchant platform, and partnered with a leading global ecommerce platform to provide small business capital to their sellers.
Rothschild & Co served as the exclusive financial advisor to LendingPoint in the transaction. Paul Hastings LLP served as the legal advisor to LendingPoint. Wachtell, Lipton, Rosen & Katz served as the legal advisor to Warburg Pincus.
Source: Business Wire
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