Victory Park invests $204.2 mln in Zencap

Victory Park Capital said Tuesday it has agreed to invest up to 230 million euros (US$204.2 mln) in loans originated by Zencap over a three year period. Berlin-based Zencap is an online lending marketplace for small business loans in Continental Europe.

PRESS RELEASE

CHICAGO–(BUSINESS WIRE)–Victory Park Capital (VPC), an asset management firm focused on middle market debt and equity investments, announced today that it will invest up to €230 million in loans originated by Zencap over a three year period, under an exclusive agreement. The partners are teaming up to provide small and medium-sized enterprises (SMEs) in Germany, Netherlands and Spain with efficient, fast and easy access to capital. Zencap is the fastest growing online lending marketplace in Continental Europe, allowing SMEs to apply for loans between €5.000 and €250.000.

Under the terms of the preferred partnership agreement, VPC will be the largest institutional investor on the P2P platform and has secured a credit facility from a leading global bank to leverage Zencap loans at favorable rates. The transaction represents the largest commitment to an online lending platform in Continental Europe and underlines the increasing importance of the sector.
“We are impressed with the Zencap team’s ability to execute an ambitious strategy, and their results in the three countries they operate in give us confidence that this emerging platform is serving a critical market need,” said Gordon Watson, principal at Victory Park Capital. “With this additional lending facility, Zencap will be well positioned to continue to achieve substantial growth over the near term and firmly establish itself as a market leader in Continental Europe.”
Matthias Knecht, co-founder and managing director of Zencap, added, “We are excited to announce this long-term, strategic partnership with VPC, the leading investor in the industry. This groundbreaking transaction will help to further accelerate our growth and support us in our mission to provide fast and seamless access to capital for small businesses in Europe.”
About Victory Park Capital
Victory Park Capital (VPC) is a privately held registered investment advisor dedicated to alternative investing through the management of its investment vehicles. As specialists in credit and private equity investments, VPC focuses on middle market companies across a diversified range of industries. Whether as a lender or a control investor, VPC seeks to identify opportunities where it believes the potential for reward outweighs the risks entailed. Founded in 2007, VPC is headquartered in Chicago with additional resources in Los Angeles, New York and San Francisco. For more information visit: www.victoryparkcapital.com.
About Zencap
Zencap is the fastest growing online lending marketplace for small business loans in Continental Europe. The online lender, founded by Dr. Christian Grobe and Dr. Matthias Knecht, launched its German platform in March 2014 and has expanded to Spain and the Netherlands since. Zencap’s small business loans are funded by private retail investors via the Zencap marketplace as well as institutional investors. The driving force behind the company is a team of more than 70 experts with deep expertise in finance and technology. Headquartered in Berlin, the firm is supported by Rocket Internet. For more information visit: https://www.zencap.de.