Consumer credit and fin-tech company Applied Data Finance (ADF) has launched the Institutional Whole Loan Platform with the goal of providing institutional investors the opportunity to purchase loans originated on ADF.
Lead investor Colchis Capital Management becomes the first institutional investor allowed to purchase loans on the platform. Colchis also has an equity stake in ADF.
Colchis co-founder and CEO Bob Conrads said the deal with ADF is a continuation of an established pattern.
“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.”
Mr. Conrads added ADF has a unique combination of attributes likely to help them succeed in the marketplace.
“There is a clear market need for unsecured finance that few players in the industry are structured to provide. We believe that Krishna (Gopinathan, ADF Co-CEO) 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.”
Via consumer brand Personify Financial ADF provides credit to near-prime and sub-prime consumers using proprietary analytics which incorporate more data sets not considered by traditional lenders. Levered and unlevered options are both available.
There is likely more agreements to come. ADF said in a release they have several similar partnerships in development.
Colchis is joined by Victory Park Capital, who earlier this year made an equity investment in ADF and also provided a credit facility.