VPC in $100m Aussie retail securitisation

The Chicago-based alternative lender has created a new warehousing securitisation programme for Australian retail lender and payments system provider zipMoney.

US alternative lender and private equity investment firm Victory Park Capital (VPC) has completed a €108 million asset-backed securitisation programme with Australia’s zipMoney, a retail credit and digital payments service provider. 

VPC has also bought five million shares in zipMoney for $1 million with a three-year option for another five million at 20 cents each.

The warehousing securitisation programme includes three classes of unrated notes and pricing details were not disclosed. zipMoney will transfer $7 million of loan receivables to the trustee, Perpetual Corporate Trustee Limited.

The financing allows zipMoney to recycle capital back into its expansion and is intended to boost the lender’s merchant acquisition strategy as well as funding the growth of its consumer finance book. 

“This is our first major deal in Australia where we see tremendous opportunity for Victory Park Capital to be a leader in the market. There is a clear void in the market as traditional financing sources remain reluctant to support the local FinTech sector. We believe that this is the right time to partner with zipMoney and are confident that the new lending facility will enable the company to achieve substantial growth,” said VPC’s Harsh Patel. 

Larry Diamond, managing director and chief executive of zipMoney, added: “This is a major step forward for the company. Having access to such a substantial warehouse facility allows us to accelerate our merchant discussions and compete head to head with the major incumbents. There are now no barriers to onboarding enterprise merchants across zipMoney’s target markets.”

In September, VPC signed a partnership with European online lending platform Zencap. It will make loans totalling up to €230 million via the small- and medium-sized enterprise lending platform over the next three years. 

VPC manages a UK-listed investment trust, VPC Speciality Lending, which invests in loans originated by marketplace lending platforms. The Chicago-based firm is currently fundraising for its $400 million VPC Private Debt Fund and has a $650 million target for its third special opportunities closed-ended fund.