Victory Park has provided a $25 million credit facility for AvantCredit, an online lending company that provides $1,000 to $10,000 loans to individuals, the firm announced in a statement.
The firm also participated in AvantCredit’s Series A equity round, which was led by August Capital.
AvantCredit began issuing loans earlier this year and has already accumulated a $4 million loan portfolio, according to a statement. Victory Park’s funding will allow the business to internal technology and analytics capabilities, AvantCredit co-founder John Sun said in a statement.
The firm sourced the deal through its relationship with AvantCredit’s founder Al Goldstein, Victory Park co-founder Brendan Carroll told Private Debt Investor. Victory Park completed the investment through its $480 million VPC II vehicle.
The firm has been active in the e-commerce sector as of late. Last month, the firm made a $75 million debt investment in online financing company Kabbage alongside Thomvest Ventures.
“Traditional banks remain hesitant to lend across consumer segments, so we are seeing a lot of underserved borrowers. This has opened the door for the growth of alternative and innovative credit solutions,” Carroll said in an email.
Victory Park invests in a variety of sectors, including industrials, services and consumer products. Carroll founded the firm in 2008 alongside Richard Levy, Matthew Ray and David Valentine. The co-founders had been members of multi-strategy investment firm Magnetar Capital.