LendingPoint Announces $ 125 Million Growth Investment from Warburg Pincus
ATLANTA – (COMMERCIAL THREAD) – LendingPoint, a fintech platform, today announced a $ 125 million preferred stock investment from Warburg Pincus, a leading global private equity firm focused on growth investing. LendingPoint will use the product to extend its financing solutions for its e-commerce, point-of-sale and financial institution partners and further enhance its data and technology platform.
LendingPoint believes everyone deserves to feel the power of financial opportunity. The company uses data, technology, and a scalable platform to deliver installment loan options to consumers and small business owners who have requested financial solutions directly or through thousands of merchant partnerships and trading platforms. integrated electronic commerce. Since its first loan in 2015, until December 2020, LendingPoint has generated more than $ 2.5 billion.
“We continue to develop our platform to provide world-class financing and white-label solutions,” said Tom Burnside, CEO and co-founder of LendingPoint. “We are delighted to partner with Warburg Pincus as we continue to invest in data science and technology to better serve our customers. ”
Juan E. Tavares, Chief Strategy Officer and Co-Founder of LendingPoint continued, “As we refine and expand our product offerings, our new partnership with Warburg Pincus will help us achieve our goal of creating a new category of financial services. ”
Warburg Pincus has invested more than $ 11 billion across the financial services landscape, including insurance, banking, asset management, specialty finance, payments and transaction processing. With the investment from Warburg Pincus, LendingPoint has raised over $ 325 million in equity to date.
“LendingPoint’s unique use of data and technology and its industry-leading lending platform has enabled it to scale rapidly by providing financial solutions and superior service to its growing customer base,” said Eric Friedman, Principal General of Warburg Pincus. “We believe LendingPoint has substantial opportunities for continued growth and we are delighted to partner with Tom and his leadership team to exploit these opportunities, invest in new capabilities and support their customers. ”
Warburg Pincus’ investment follows an impressive 2020 for LendingPoint, which ended the year profitable, closed its 10e securitization transaction, launched its SDKn platform, enhanced its point-of-sale merchant platform, and partnered with a leading global e-commerce platform to provide capital to small businesses to their sellers.
Rothschild & Co acted as LendingPoint’s exclusive financial advisor in the transaction. Paul Hastings LLP served as legal counsel to LendingPoint. Wachtell, Lipton, Rosen & Katz acted as legal advisers to Warburg Pincus.
LendingPoint is a financial technology platform that provides financing origination solutions to its e-commerce and point-of-sale partners, lending institutions, and consumers. The company’s fraud prevention, risk management and asset management algorithms are used to create financing opportunities across the entire credit spectrum. Its LendingPoint Merchant Solutions platform provides fully integrated e-commerce platforms, merchants and other service providers, one-stop buy now, pay later financing solutions to convert more customers.
Over the past two years, LendingPoint has been named one of Inc’s fastest growing private companies. 5000, ranking 17e in 2019. LendingPoint ranked 9th on Deloitte’s 2019 Technology Fast 500, and in 2020, was ranked among the 40 Fastest Growing Companies in Atlanta by ACG. LendingPoint is a privately held company headquartered in the Metro Atlanta area, with offices in New York City.
About Warburg Pincus
Warburg Pincus LLC is a leading global private equity firm focused on growth investments. The company manages more than $ 56 billion in private equity assets. The company’s active portfolio of over 190 companies is highly diversified by stage, industry and geography. Warburg Pincus is an experienced partner of leadership teams seeking to build sustainable businesses with enduring value. Founded in 1966, Warburg Pincus has raised 19 private equity funds, which have invested more than $ 86 billion in more than 910 companies in more than 40 countries. The company is headquartered in New York and offices in Amsterdam, Beijing, Berlin, Hong Kong, Houston, London, Luxembourg, Mumbai, Mauritius, San Francisco, São Paulo, Shanghai and Singapore. For more information, please visit www.warburgpincus.com.