Castlelake, a global alternative investment firm, and Vervent, a leading FinTech servicing company, have officially announced a new forward flow agreement worth $180m.
In this collaboration, certain Castlelake funds and affiliates are set to provide up to $180m to Vervent and its affiliates.
Under the forward flow agreement, affiliates of Vervent will utilise the capital injection to finance origination for Revvi, Total Card, and First Access unsecured credit card programs. This financial support aims to enhance Vervent’s capability to provide high-quality non-prime credit card programs.
Castlelake believes this transaction not only supports Vervent’s efforts but also allows investors to gain exposure to the sizable consumer credit opportunity set. The company’s extensive experience in consumer credit investments aligns with the vision to boost non-prime credit card programs for underserved consumers.
Vervent, as a FinTech leader, sets the global standard for outperformance in the industry. Offering services such as Credit Card Servicing, Loan & Lease Servicing, Backup Servicing/Capital Markets Services, Managed Services, and Credit Card Programs.
Castlelake has been a seasoned investor in the consumer credit sector, actively involved in acquiring assets and providing asset-based private credit since 2015. With over $4bn invested in opportunities and the acquisition or origination of more than 17m consumer receivable accounts, the company is a key player in the alternative investment landscape.
John Lundquist, Partner, Specialty Finance at Castlelake, said, “Castlelake is pleased to continue supporting Vervent’s efforts to provide access to high quality non-prime credit card programs. Further, we believe this transaction enables our investors to gain interesting exposure to the sizable consumer credit opportunity set.”
Joseph Noe, Chief Credit Officer of Vervent, said, “We are pleased to enter into another agreement with Castlelake to help meet the increasing demand for full-service credit cards for non-prime consumers. Vervent is committed to increasing access to credit for underserved consumers and we believe our strategic relationship with Castlelake continues to drive that vision and help customers in need.”
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