Fortress backs $120m capital raising by MoneyMe
Global credit investor Fortress Investment Group will invest $100 million in debt capital to support MoneyMe’s consumer lending growth as the fintech considers an initial public offering in early 2019.
Fortress’s investment is part of a $120 million asset-backed securitisation deal, which also includes a $20 million bond, issued by Evans & Partners, which was oversubscribed.
MoneyMe, which has made $150 million in personal loans to 70,000 customers in the past four years, is both cash flow positive and profitable, very rare for an Australian fintech.
Established in 2013, its net loan book is growing at $1 million each week, as it targets the credit card portfolios of the major banks. It also competes with peer-to-peer lenders like SocietyOne and Ratesetter.
Co-founder and CEO Clayton Howes said there will be more MoneyMe deals to come, including more debt-funding facilities and a possible IPO on the Australian Securities Exchange.
“We will look to public markets for the next stage of our journey,” he said. “An IPO in perhaps around 18 months would certainly not be out of the question.”
Of its $150 million in lending, $80 million has been advanced in the past 12 months. Mr Howes said the Fortress facility should provide enough funding for another 12 to 18 months of loans, at which time MoneyMe will consider an additional debt funding deal between $250 million to $500 million. This would surpass ASX-listed zipMoney’s $260 million debt facility announced in May, the largest debt market deal for an Australian fintech.
Access to global funding will allow MoneyMe “to compete and become a genuine threat to the banks, given Millennials are disenfranchised with them”, Mr Howes said.
Mr Howes, a former Vodafone executive, said Fortress’s investment followed a stringent, nine-month due diligence process, which validated both the MoneyMe business model and the regulatory environment for Australian fintech.
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Source: Fortress backs $120m capital raising by MoneyMe | afr.com
