Australian consumer lending fintech, MoneyMe, announced on Tuesday it has finalized an AU$120 million asset-backed wholesale securitization facility led by $100 million from global investment manager, Fortress Investment Group, and joined with $20 million of bonds issued by corporate advisory, Evans & Partners.
“A capital investment of this magnitude is recognition of the strength and depth of our value proposition, and an indication of the strong potential for Australian fintechs to capture serious wholesale market funding. A securitization warehouse structure and our institutional-grade treasury function akin to the major banks — combined with advanced automation and personalization capabilities, data-driven product integrity, cutting-edge technology for scalability, and a relatable brand personality — is a sure-fire way for Australian fintechs to attract the interest of global investors.”
Howes also noted:
“This type of validation by a global investment management company, Fortress Investment Group, affirms a funding path that will now allow us to capitalise on growth and market share opportunities where bank branch models are not a natural fit in this digital age. As we further increase our independence and position as a mainstay in the improved distribution of consumer finance, we see this validation as a win for Australian fintech as a whole.”
Evans & Partners, the corporate advisory firm that led the bond issuance, has notably raised over $1.5 billion since 2008. The bond issued in this transaction is a publicly-tradable security, which investors are attracted to for the stability, yield, and track record of performance in this emerging sector. Howes added:
“As the millennial generation ages and gains even greater consumer power with their increasing incomes, their credit needs will also change and mature with them. Our aim is to be there throughout their credit lifecycle journey, seamlessly delivering real-time finance solutions in the locations and format that allow focus to remain on the consumption experience and not the transaction itself.”