Israel-based Liquidity Group is a global capital market credit automation company and fund manager. It just announced $775 million in capital commitments led by funds and entities managed by affiliates of Apollo.
Led by Apollo and MUFG
The commitments are subject to satisfaction of certain conditions. It will include $425 million from Apollo Funds for a credit facility to help Liquidity scale its lending activity for late-stage technology companies, $300 million from MUFG Bank for a debt fund JV named Mars Growth Capital, which invests in future unicorn companies ans $50 million SAFE note investment by Apollo Funds, MUFG Innovation Partners and Spark Capital.
MUFG Bank is MUFG’s core banking subsidiary and a key strategic capital partner to Liquidity. It has invested equity venture capital in the business and formed multiple joint lending ventures.
The new commitments are consistent with Apollo’s strategy to serve as a capital partner, enabler, and strategic investor. Besides this, Apollo Partner, Joshua Black, joined Liquidity’s Board of Directors.
“We’re pleased to form this new capital partnership with Liquidity Group to support their growth while helping our investors access attractive yield with strong credit fundamentals,” said Bret Leas, Apollo Partner and Global Head of Structured Corporate Credit & ABS. “Ron and his team at Liquidity are connecting technology borrowers and credit investors via an innovative, data-driven ecosystem, and we look forward to working with them as they scale the business.”
“The new capital partnership with Apollo and the continued and successful partnership with MUFG is validation of our founding vision to use artificial intelligence to transform the capital markets,” said Ron Daniel, Co-Founder and CEO of Liquidity Group. “Working with Apollo will allow us to continue our own expansion, fund more companies, and provide reliable returns on investment to our partners. Josh, Jasen and the rest of the Apollo team have proved to be the right partners for this ride with their passion to adopt best of breed solutions.”
“MUFG is welcoming Apollo’s investment to Liquidity Capital. We are aiming to provide various financial services to start-up companies and to the ecosystem as a whole, together with the investing partners,” said Fumitaka Nakahama, Group Head, Global Corporate & Investment Banking Business Group, MUFG.
Uses proprietary machine learning
Founded in 2018 by Ron Daniel, Yaron Sela, and Oron Maymon, Liquidity Group is a credit-oriented fintech platform that invests, syndicates and automates growth and middle market lending for businesses around the world. It provides capital to later-stage technology companies.
It combines real-time data with proprietary machine learning technology to offer tailored financing that matches a company’s future growth. Liquidity’s patented technology offers unparalleled insight into private growth companies and provides robust predictions about their future. Liquidity Group operates three main divisions: Analysis, Capital, and Market Syndication, which together enable global lenders a complete cycle of scaled and quick credit deployment.
It provides growth capital through funds focused on the US, Asia, Europe and the Middle East. Singapore-based Mars Growth Capital, and its partner MUFG jointly handle the company’s South East Asia activity.
Since inception, Liquidity Group has committed more than $1 billion in capital to fast-growing companies, including eTtoro, Zetwerk & Homer.