Viola Credit Secures $700M for Asset-Based Lending Fund

Alternative credit asset manager and FinTech startup Viola Credit closed its $700 million fund — the Viola Credit Alternative Lending Income Fund II (ALF II) — providing asset-based lending capital to FinTech, PropTech and InsurTech startups.

“We’ve deployed over $1.1B to date under this strategy and have partnered with over 15 promising platforms,” Ruthi Furman, founder and general partner at Viola Credit, said in a press release on Thursday (May 26).

Furman added that launching an additional alternative lending income fund will offer continued support to the growing FinTech ecosystem worldwide.

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ALF II is following the strategy of previous funds and will provide “minimally dilutive asset-based lending capital solutions” to startups and established firms that are in the business of disrupting traditional financial markets, according, to the release.

“Financial services are undergoing transformational shifts. This FinTech revolution, driven by acceleration of digital adoption and emergence of new business models, enables new forms of banking experience and consumer financial services, which requires securing of lending capital solutions to support growth,” said Ido Vigdor, general partner at Viola Credit. 

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The fund is planning to collaborate with FinTech disruptors in the traditional lending space across the U.S., Western Europe, the U.K., Australia and New Zealand. At ALF II’s final close, it has already called more than 40% of its capital commitments and plans to partner with 13-15 additional FinTech platforms, per the release.

Launched in 2000 and headquartered in Tel Aviv, Israel, Viola Credit is a global credit investment manager targeting the innovation economy and supporting its development. The firm is a unit of the Viola Group, Israel’s “largest technology investment house with over $4B in assets under management.”