Credit asset manager Viola Credit has closed an alternative lending fund worth $700m (£556.9m) that will back fintech firms.
The Israeli global alternative credit asset manager has closed the Viola Credit Alternative Lending Income Fund II which will provide asset-based lending capital solutions to global fintech companies that are disrupting traditional financial markets.
The fund will partner with fintech platforms across the UK, the US, Western Europe, UK, Australia, and New Zealand and support them to scale their origination business.
As of the final close, the fund has already called over 40 per cent of its capital commitments and plans to partner with 13 to 15 additional fintech platforms.
Viola Credit said financial markets are undergoing digital transformation giving rise to non-bank and alternative lending companies and cited data from CBI Insights that showed fintech lenders originated in excess of $120bn (£95.46bn) in loans in 2021.
“We’re excited to launch an additional alternative lending income fund,” said Ruthi Furman, founder and general partner at Viola Credit.
“We’ve deployed over $1.1bn to date under this strategy and have partnered with over 15 promising platforms. We’re excited to launch an additional alternative lending income fund to continue supporting this growing fintech ecosystem globally.”
“Financial services are undergoing transformational shifts,” said Ido Vigdor, general partner at Viola Credit.
“This fintech revolution, driven by acceleration of digital adoption and emergence of new business models, enables new forms of banking experience and consumer financial services, which requires securing of lending capital solutions to support growth.
“We pride ourselves on partnering with innovative fintech platforms to nurture them as a company, help them build their products, and be an essential part of their go-to-market strategy.”
Viola Credit has previously invested £50m in alternative business lender MarketFinance to support its business lending under the coronavirus business interruption loan scheme.