Viola Credit closes $700m for its Alternative Lending Income Funds

By Leandra Monteiro

Viola Credit, a global alternative credit asset manager providing customised credit solutions to technology companies and FinTech lenders, announced the final closing of the Viola Credit Alternative Lending Income Fund II (ALF II) with $700 million of investable capital including its flagship fund and related managed accounts. ALF II will follow the strategy of its prior vintage and will provide minimally dilutive asset-based lending capital solutions to emerging and established global FinTech, PropTech, and InsurTech companies that are disrupting traditional financial markets.

The FinTech sector gained significant momentum in 2021 with global FinTech funding reaching a record $132 billion and the global FinTech unicorn count hitting 235, up 108% from 2020. Financial markets are undergoing digital transformation giving rise to non-bank and alternative lending companies and in 2021 alone, FinTech Lenders originated in excess of $120 billion in loans.

ALF II will continue to enjoy its robust network and deep long-standing relationships with the technology ecosystem to provide asset-backed lending transactions for FinTech platforms to scale their origination business. The fund will partner with FinTech platforms across the US, Western Europe, UK, Australia, and New Zealand that disrupt traditional lending sectors. As of the final close, the fund has already called more than 40% of its capital commitments and plans to partner with 13-15 additional Fintech platforms.

“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 $1.1B 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.”

Viola Credit is a long-term credit partner that can support the capital requirements of companies of all types and stages, from operational capital needs in supporting growth to asset-based lending needs to finance FinTech lenders. With deep banking, financial, and technology investment experience, the Viola Credit team has become the lender of choice to many promising companies 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.”