LendingPoint Closes Up to $110 Million Mezzanine Facility with Midcap Financial Trust and Apollo Investment Corporation
March 09, 2021 at 08:00 AM EST
LendingPoint Consolidated, Inc., parent of the financial technology platform LendingPoint, today announced the closing of an up to $110 million, 5-year corporate mezzanine credit facility (the “Facility”) with new partners MidCap Financial Trust (“MidCap”), managed by a subsidiary of Apollo Global Management, Inc. and Apollo Investment Corporation (NASDAQ: AINV).
The announcement follows a recent $125 million preferred equity investment from Warburg Pincus, a leading private investment firm focused on growth investing.
“We are delighted with the confidence in LendingPoint MidCap and Apollo have shown in entering into this 5-year facility. This relationship will be an important part of our growth strategy, enabling us to facilitate responsible credit and unlock the power of financial possibility for the greatest number of consumers and businesses as possible,” said Tom Burnside, CEO of LendingPoint. Tom continued, “We closed out 2020, our second consecutive profitable year, with a focus on building an AI-driven buying and selling ecosystem wherein data drives pricing, discounting and offer presentation to the right consumers and businesses at the right time, streamlining, accelerating and democratizing commerce.”
JD Gettmann, Head of Lender Finance at MidCap, said, “We have followed LendingPoint since its inception and their platform has consistently executed at the highest level. We are excited to partner with the LendingPoint team as they continue to provide access to capital for consumers and small businesses across the country.”
In 2020, LendingPoint launched SDKn, a proprietary technology which creates an instant consumer credit pre-approval platform for businesses of all sizes; enhanced its buy now, pay later merchant platform; and partnered with a leading global ecommerce platform to provide small business capital to their sellers. This year, LendingPoint is focused on further improving the customer journey through investments in AI and user experience, expanding the functionality in its mobile app, and identifying new ways to meet consumers where they are with the products they want.
LendingPoint is a financial technology platform that provides financing origination solutions for its ecommerce and point of sale partners, its lending institutions, and to consumers. The company’s fraud prevention, risk and asset management algorithms are used to create financing opportunities across the credit spectrum. Its Buy Now Pay Later LendingPoint Merchant Solutions platform provides ecommerce platforms, merchants, and other service providers fully integrated, one-stop buy now, pay later financing solutions to convert more customers.
For the past two years, LendingPoint was named one of Inc. 5000’s list of fastest-growing private companies, ranking 17th in 2019. LendingPoint ranked on Deloitte’s Technology Fast 500 list in 2019 and 2020, and was honored as one of the top 40 fastest growing companies in Atlanta by ACG. LendingPoint is a privately held company headquartered in Metro Atlanta, with offices in New York. LendingPoint, LLC owns and operates the LendingPoint platform. LendingPoint Consolidated, Inc. is the parent company of LendingPoint, LLC. www.LendingPoint.com
About MidCap Financial
MidCap Financial is a middle market focused specialty finance firm that was formed in 2008. As of December 31, 2020, MidCap Financial, and its subsidiaries, provides management or other services for over $29.8 billion of commitments, of which $5 billion is managed by MidCap Financial Services Capital Management, LLC, its registered investment advisor.
MidCap Financial refers to MidCap FinCo Designated Activity Company, a designated activity company limited by shares incorporated under the laws of Ireland, and its subsidiaries, including MidCap Financial Trust. MidCap Financial is managed by Apollo Capital Management, L.P., a subsidiary of Apollo Global Management, Inc. MidCap Financial Services, LLC provides sourcing, due diligence and portfolio management services to MidCap Financial. Loans made or arranged pursuant to a California Finance Lenders Law license.
About Apollo Investment Corporation
Apollo Investment Corporation (NASDAQ: AINV) is a closed-end investment company that has elected to be treated as a business development company under the Investment Company Act of 1940. The Company invests primarily in various forms of debt investments, including secured and unsecured debt, loan investments, and/or equity in private middle-market companies. The Company may also invest in the securities of public companies and structured products and other investments such as collateralized loan obligations and credit-linked notes. The Company seeks to provide private financing solutions for private companies that do not have access to the more traditional providers of credit. Apollo Investment Corporation is managed by Apollo Investment Management, L.P., an affiliate of Apollo Global Management, Inc., a leading global alternative investment manager. For more information, please visit www.apolloic.com.