SoFi secures $2bn credit line from Fortress
US investment marketplace SoFi Technologies has announced a $2bn (£1.54bn) credit line from Fortress Investment Group to support its growth.
The agreement will allow SoFi to expand the capabilities of its loan platform.
Following the funding announcement, shares in SoFi rose by 10 per cent.
“SoFi’s loan platform business is an important part of our strategy to serve the financial needs of more members and diversify toward less capital-intensive and more fee-based sources of revenue,” said Anthony Noto, chief executive of SoFi.
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“We’re pleased to see continued strong demand for SoFi’s loan platform business.
“Fortress’ collaboration, seamless execution, and appreciation of the platform’s value proposition makes them an exceptional partner.”
Dominick Ruggiero, co-head of specialty finance at Fortress, said that the firm was attracted to SoFi’s innovative business model.
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“Fortress is pleased to partner with SoFi to support the growth of the company’s loan platform business,” said Ruggiero.
“SoFi’s platform – and its focus on innovation and providing valuable credit solutions to its members – create a compelling investment opportunity for Fortress’s funds.
“We are excited about building a mutually beneficial partnership with SoFi.”
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