ATLANTA–(BUSINESS WIRE)–LendingPoint, a financial technology platform, today announced a $125 million preferred equity investment from Warburg Pincus, a leading global private equity firm focused on growth investing. LendingPoint will use the proceeds to expand its financing solutions for its ecommerce, 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 possibilities. 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 integrated ecommerce platforms. From its first loan in 2015, through December 2020, LendingPoint has originated over $2.5 billion.
“We continue to build our platform to provide world class financing and white label solutions,” said Tom Burnside, CEO & Co-Founder, LendingPoint. “We are thrilled to partner with Warburg Pincus as we continue to make the investments in data science and technology to better serve our customers.”
Juan E. Tavares, Chief Strategy Officer & Co-Founder of LendingPoint continued, “As we refine and extend our product offerings, our new partnership with Warburg Pincus will help us fulfill our goal of creating a new category in financial services.”
Warburg Pincus has invested over $11 billion across the full spectrum of the financial services landscape, including insurance, banking, asset management, specialty finance, payments, and transaction processing. Together with the Warburg Pincus investment, LendingPoint has raised more than $325 million of equity to date.
“LendingPoint’s unique use of data and technology and best-in-class lending platform has enabled it to scale rapidly by providing financial solutions and superior service to its expanding customer base,” said Eric Friedman, Managing Director, Warburg Pincus. “We believe LendingPoint has substantial opportunities for continued growth and are excited to partner with Tom and his management team to execute on these opportunities, invest in new capabilities, and support their customers.”
The Warburg Pincus investment follows an impressive 2020 for LendingPoint, who ended the year profitable, closed its 10th securitization transaction, launched its SDKn platform, enhanced its point-of-sale merchant platform, and partnered with a leading global ecommerce platform to provide small business capital to their sellers.
Rothschild & Co served as the exclusive financial advisor to LendingPoint in the transaction. Paul Hastings LLP served as the legal advisor to LendingPoint. Wachtell, Lipton, Rosen & Katz served as the legal advisor to Warburg Pincus.
LendingPoint is a financial technology platform that provides financing origination solutions for its ecommerce and point of sale partners, its lending institutions and to consumers. The company’s fraud prevention, risk and asset management algorithms are used to create financing opportunities across the credit spectrum. Its LendingPoint Merchant Solutions platform provides ecommerce platforms, merchants and other service providers fully integrated, one-stop buy now, pay later financing solutions to convert more customers.
For the past two years, LendingPoint was named one of Inc. 5000’s list of fastest-growing private companies, ranking 17th in 2019. LendingPoint ranked 9th on Deloitte’s 2019 Technology Fast 500 and in 2020 was honored as one of the top 40 fastest growing companies in Atlanta by ACG. LendingPoint is a privately held company headquartered in Metro Atlanta, with offices in New York.
About Warburg Pincus
Warburg Pincus LLC is a leading global private equity firm focused on growth investing. The firm has more than $56 billion in private equity assets under management. The firm’s active portfolio of more than 190 companies is highly diversified by stage, sector, and geography. Warburg Pincus is an experienced partner to management teams seeking to build durable companies with sustainable value. Founded in 1966, Warburg Pincus has raised 19 private equity funds, which have invested more than $86 billion in over 910 companies in more than 40 countries. The firm is headquartered in New York with 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.
Rachel Fiore, Just Drive Media
Sarah McGrath Bloom, Warburg Pincus