Viola Credit, the alternative lending asset manager of Israel’s largest technology investment house Viola Group, announced Thursday the permanent closure of its Alternative Lending Income Fund II (ALF II) with $700 million in investable capital.
“ALF II will provide minimally dilutive asset-based lending capital solutions to emerging and established global fintech, prop-tech and insurance-tech companies disrupting traditional financial markets,” the announcement reads.
ALF II will also continue to provide asset-backed lending transactions for fintech platforms to grow their origination business by partnering with fintech platforms that are disrupting traditional lending sectors in the US, Western Europe, UK, Australia and New Zealand. By final closing, the fund has already targeted more than 40 percent of its capital commitments and plans to partner with 13-15 other fintech platforms.
“We are pleased to launch an additional Alternative Lending Income Fund,” said Ruthi Furman, Founder and General Partner of Viola Credit. “We have committed over $1.1 billion under this strategy to date and have partnered with over 15 promising platforms. We are excited to launch an additional Alternative Lending Income Fund to continue to support this growing fintech ecosystem globally.”
With the current digital transformation of financial markets and the rise of non-band and alternative lending companies, global fintech funding hit a record $132 billion in 2021, and the number of global fintech unicorns rose to 235, an increase up 108 percent from 2020 In 2021 alone, fintech lenders made over $120 billion in loans.
“Financial services are changing,” said Ido Vigdor, General Partner at Viola Credit. “This fintech revolution, fueled by accelerating digital adoption and the emergence of new business models, is enabling new forms of banking experience and consumer financial services that require securing lending capital solutions to support growth. We are proud to partner with innovative fintech platforms to grow them as businesses, help them develop their products and be an integral part of their go-to-market strategy.”