Fintech lender secures $120m warehouse facility

Australian fintech lender MoneyMe has finalised a $120 million asset-backed wholesale securitisation facility led by a global investment manager.

Fortress Investment Group provided $100 million, which was augmented by $20 million worth of bonds issued by corporate advisory Evans and Partners.

MoneyMe is looking to attract the digitally savvy millennial consumer market over the next three to five years through an expanded product range and additional delivery channels.

“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,” MoneyMe co-founder and CEO Clayton Howes said.

“A securitisation warehouse structure and our institutional-grade treasury function akin to the major banks — combined with advanced automation and personalisation capabilities, data-driven product integrity, cutting-edge technology for scalability, and a relatable brand personality — [are] a sure-fire way for Australian fintechs to attract the interest of global investors.

“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.”

Evans and Partners, the corporate advisory firm that led the bond issuance, has raised over $1.5 billion since 2008. The bond issued in this transaction is a publicly tradable security.

The capital injection will be used to fund continued loan book growth and facilitate both the expansion of MoneyMe’s distribution channels and the launch of a series of niche loan products targeting the millennial market.

“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,” Mr Howes said.

“Our aim is to be there throughout their credit life cycle 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.”

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