Atlanta-based alternative credit bureau FactorTrust has secured $42 million in funding. ABS Capital Partners and MissionOG led the round. In conjunction with the investment, FactorTrust has named Michael Heller, MissionOG advisor, as president and board member; Gene Lockhart, chairman and managing partner of MissionOG, as FactorTrust’s board chair; and Phil Clough, managing general partner at ABS Capital, as board member.
ATLANTA–(BUSINESS WIRE)–FactorTrust, the alternative credit bureau, announced today that Michael Heller, an information and analytics industry leader, has joined as president. The company also closed on a $42 million investment led by ABS Capital Partners, a leading late-stage growth company investor, and MissionOG, a leading early to growth stage investor. With the investment, FactorTrust will accelerate its growth and expand its suite of offerings to enable lenders to drive desired business results in a challenging compliance environment.
Founded nine years ago, FactorTrust provides solutions that utilize rich, proprietary data not available from traditional credit bureaus, and are driven by a strong technology platform and best-in-class predictive analytics. The company continues to see tremendous demand for its products as they enable lenders to more accurately assess credit risk for non-prime and underbanked consumers, while also providing consumers with the credit options they seek and deserve.
ABS Capital Partners and MissionOG bring deep industry expertise and understand the increased need for the type of data and scores provided by FactorTrust. After reviewing a number of companies in the alternative data landscape, they selected FactorTrust because of its significant potential for growth and expansion.
Michael Heller, MissionOG advisor and former president and co-founder of Argus Information and Advisory Services-acquired by Verisk Analytics in 2012, will join FactorTrust as the company’s president and will serve on the board. Heller has more than 25 years of leadership experience in providing information services and analytics to the payments, lending and banking industries. “We are well-positioned to continue making a significant impact on the underbanked industry and are excited to have Michael Heller as President during this new phase of growth,” says FactorTrust CEO Greg Rable. “FactorTrust has tremendous potential for further growth, including by broadening the industries we serve beyond short-term and installment lenders and by expanding our focus beyond underwriting data services, both of which could be accelerated by acquisitions,” Heller added.
With the investment, ABS Capital Partners Managing General Partner, Phil Clough, will join FactorTrust’s board of directors. “We ultimately chose FactorTrust because we perceived their data and analytics as the most differentiated and useful in the alternative credit space,” stated Clough. “The underbanked industry is constantly evolving, and we felt FactorTrust was innovative and the best equipped to manage and benefit from the rapid rate of change.”
Gene Lockhart, Chairman and Managing Partner of MissionOG, will also join as FactorTrust’s board chair. Lockhart has served in a variety of senior positions including president and CEO of MasterCard International, CEO of Midland Bank PLC, president of the Global Retail Bank for Bank of America and chaired or served on the board of numerous companies, including NetSpend, Progressive Finance and Metro Bank PLC. Lockhart was also chairman of Argus where he and Heller developed the proprietary data sets and charted overseas expansion.
“FactorTrust operates one of the largest proprietary databases in the underbanked industry with a robust dataset, a strong technology platform, and a loyal and growing base of customers,” according to Lockhart.
Over the past two years, FactorTrust has experienced tremendous growth. With more than 200 million loan transaction records, the company’s proprietary credit risk and consumer data is also growing at an impressive rate. FactorTrust is adding more than 350,000 new unique consumers per month to the database, while revenues have more than doubled year-over-year.
“Powered by this investment, along with the knowledge and relationships of the entire ABS Capital and MissionOG teams, including Heller and Lockhart, we are in the best position to scale the success of our FactorTrust data and analytics infrastructure to create innovative solutions that meet the industry’s rising needs within the lending landscape,” Rable concluded.
FactorTrust, The Alternative Credit Bureau, helps lenders manage the credit lifecycle of underbanked consumers using unique alternative credit information not available from the Big Three bureaus, enabling them to offer non-prime consumers the credit they deserve. Nearly 100 million U.S. adults have non-prime scores. Leveraging the company’s credit information, lenders can more accurately predict future borrowing behavior, credit performance and risk scoring for this growing segment. Headquartered in Atlanta, the experienced FactorTrust team of predictive analytics specialists, statisticians and financial industry experts has delivered unique data and valuable insight to lenders throughout the U.S. and the U.K. for nearly 10 years. For more information on the quarterly FactorTrust Underbanked Index or the company itself, visit www.FactorTrust.com.
About ABS Capital Partners
For 25 years, ABS Capital has been investing in later-stage growth companies, helping CEOs capitalize on new opportunities and navigate unforeseen obstacles – while never losing sight of the ultimate goal of achieving lasting excellence. Our partners have decades of experience as C-level executives, investment bankers and investors in the industries we invest in: business and education services, information and communications technology, and health care. This combination of experience and proficiency means we have a laser-focus on the specific needs growth companies face as they look to get to the next level. By helping to transform over 115 companies through their most important stage of development, ABS continues to help unleash the potential for lasting growth.
ABS Capital Partners. Here, we grow.
For more information, visit www.abscapital.com.
MissionOG provides human and financial capital to early and growth stage B2B technology companies. We apply our experience and capabilities to a group of highly skilled and passionate entrepreneurs whose businesses are on the cusp of exponential growth. Headquartered in the Philadelphia region with offices in New York City, the MissionOG Fund is managed by entrepreneurial operators who have effectively built early to growth stage businesses and guided them through successful acquisitions. For more information visit www.missionog.com.