Victory Park Capital and Zip continue partnership with new US$225 million facility
Global alternative investment firm Victory Park Capital (VPC) have announced that it has closed a refinancing agreement for a US$225 million (A$341 million) debt facility with Zip Co, a global leader in the digital retail finance and payments industries. The transaction will support the growth of Zip’s US receivables.
As the third transaction between Zip and VPC, the new debt facility represents an extension of their long-standing relationship. The two companies began their partnership in 2015 with a A$108 million asset-backed warehouse facility that later grew to A$200 million. In 2020, VPC and Zip closed a A$100 million debt facility to fund receivables and support the Zip Business platform.
“We are thrilled to announce our renewed collaboration with VPC, a cornerstone investor in Zip since our early days. This pivotal transaction marks a significant step in bolstering Zip’s expansion within the U.S. market. As we refine and broaden our portfolio of consumer financing solutions¹, the three-year deal provides us with both the strategic timing and the flexibility needed to spearhead innovation in both our new and existing product lines. This partnership not only underscores our shared vision for market leadership but also cements our commitment to delivering unparalleled financial products to our American customers,” said Larry Diamond, Zip’s Co-Founder and U.S. CEO.
“Having partnered with Zip since its early innings as a company, VPC has borne witness to its transformative growth over the past several years,” said Jason Brown, Partner at Victory Park Capital. “The company’s innovative payment solutions have provided flexibility and ease to consumers and businesses worldwide. We are excited to extend our partnership and continue supporting the company as it focuses on ongoing profitable growth.”