Colchis backs ADF’s institutional whole loan platform launch

Colchis Capital Management has made an undisclosed investment in financial tech and consumer credit company Applied Data Finance. As a result of the funding, ADF is launching its institutional whole loan platform that will give investors the chance to buy loans that have originated using ADF’s predictive analytics.


SAN DIEGO – September 14, 2015 – Applied Data Finance (“ADF”), a leading financial technology and consumer credit company, today announced the launch of its Institutional Whole Loan Platform, with support from investor Colchis Capital Management (“Colchis”), to provide institutional investors with the opportunity to purchase loans originated using Applied Data Finance’s proprietary predictive analytics. The launch of this platform bolsters the company’s ability to provide unsecured consumer installment loans to the underestimated under-banked by adding aligned institutional capital to its own significant balance sheet lending resources.

ADF and Colchis, a leading investment management firm in the emerging field of non-bank lending, have established a partnership that makes Colchis the first institutional investor with the ability to purchase loans originated on the ADF platform. The agreement is the first of several in-process agreements whereby ADF will partner with additional institutional investors that are avidly exploring opportunities in the burgeoning field of consumer credit. In conjunction with that agreement, Colchis has also made an equity investment in ADF.

Through its inaugural consumer brand, Personify Financial, ADF extends credit at responsible, risk-appropriate rates to near-prime and sub-prime consumers using proprietary analytics that take a more expansive view of consumer credit risk and repayment prospects than traditional models. It incorporates knowledge of consumer behavior across the full credit spectrum allowing ADF to effectively price, manage and monitor risk while offering consumers credit that they can afford.

“We welcome the agreement with Colchis Capital Management as an endorsement from a pioneer in the marketplace lending industry,” said Krishna Gopinathan, Co-Chief Executive Officer of ADF. “Colchis is an ideal partner for ADF as we launch a critical part of our business model, the Institutional Whole Loan Platform, which will help us expand access to credit for a key part of the population that is underserved by the banking community and misunderstood by providers of conventional measures of credit risk.”

ADF has structured the Institutional Whole Loan Platform to align its interests with those of participating institutional investors. It continues to provide credit using its own balance sheet alongside its Institutional Whole Loan partners. In addition, it offers both levered and unlevered options to meet investors’ individual risk tolerance and reward expectations.

“Given Colchis’ position of having identified and worked with several now well-established leaders at an early stage, we are naturally excited about what the future holds for ADF and the broader marketplace lending sector. We look forward to being a substantial loan purchaser and financing partner as ADF executes on its vision to support consumers abandoned by traditional banks,” said Bob Conrads, Co-Founder and Chief Executive Officer. “There is a clear market need for unsecured finance that few players in the industry are structured to provide. We believe that Krishna and the management team at ADF, with over 20 years of experience in predictive analytics and data science, have a formula that will allow the company to become a leader in this field.”

This financial partnership follows an equity investment and credit facility from Victory Park Capital, an asset management firm focused on middle market debt and equity investments and a leading financier to the emerging financial technology industry.

About Applied Data Finance
ADF, through its brand “Personify Financial,” is the trusted financial partner for the underestimated under-banked. Through state-of-the-art technology and a commitment to world-class application of the most advanced techniques available in data science and machine learning, ADF is able to optimally assess the credit risk of non-prime borrowers. ADF relentlessly drives down the cost of borrowing for our customers using its technological advantage. It is led by a seasoned team of senior executives, leverages a robust and highly scalable infrastructure, and is highly committed to regulatory and compliance best practices. Find out more at and

About Colchis Capital Management
Colchis Capital Management, L.P. is a boutique alternative investment management firm headquartered in San Francisco. The firm was founded by Robert and Edward Conrads in 2005 and is currently dedicated to the emerging direct lending sector on a global basis. Colchis leverages a deep credit expertise, proprietary technology and financial structuring experience to invest in various credit products originated by direct lending platforms. Find out more at