INVESTMENT MANAGEMENT

FTV Capital makes a $100 million Series A investment in LoanPro

LoanPro | July 09, 2021

LoanPro, a major SaaS-based loan management, servicing, and collections platform for alternative, fintech, and traditional lenders, announced today a $100 million growth equity investment from FTV Capital, a sector-focused growth equity investor in innovative enterprise technology and services, financial services, and payments and transaction processing firms. LoanPro will use the funds raised to improve the functionality of its platform, expand into new loan sectors, and engage in client-centric growth efforts.

LoanPro was created in 2014 by three brothers, Rhett, Ben, and Lloyd Roberts, after discovering that there were no lending applications that suited the demands of their own lending business. LoanPro empowers lenders to regain operational control while improving real-time data insights and visibility.

LoanPro manages more than $15 billion in loans and has over 600 clients in the United States and Canada across a wide range of loan types and lending programmes (e.g., prime, sub-prime, personal, consumer, car, commercial, point-of-sale finance, and purchase now, pay later). The fundamental API design of the platform enables an automated and highly flexible process, real-time access to data and insights, frictionless payment collection, lending programme flexibility (new and current products), and a superior client experience.

"As founders who began out as lenders, we understand the pain points that lenders face," said Rhett Roberts, LoanPro's co-founder and CEO. "LoanPro was designed by lenders for lenders; we employ a current tech stack to improve the user experience of loan management; we do the hard work on the back end to keep the front end clean and simple to use. FTV Capital's investment, combined with their significant industry understanding and wide strategic network, will aid in the expansion of our platform and accelerate our capacity to reach and successfully serve even more lenders."

As a growing percentage of consumers and organisations choose to interact digitally, digital native fintechs have enjoyed tremendous development. Many of these fintechs are attempting to expand their lending capabilities. Legacy lending technology, on the other hand, was not designed to support digital-first lending, resulting in burdensome and inflexible experiences for lenders and borrowers. LoanPro addresses this issue by providing modern, cutting-edge SaaS technology for loan management, servicing, and collections that is designed to suit mid-sized and large lenders.

"It was a simple decision to go with LoanPro," said Alex Rhodes, Head of Operations at Marlette Holdings Inc., parent company of the Best Egg consumer finance platform. "With best-in-class customer service at the heart of what we do, we needed a best-in-class learning management system to match. We are excited about LoanPro's future expansion."

"FTV Capital is thrilled to be partnering with LoanPro's strong, committed leadership team, who have established an industry-leading SaaS platform based on a deep understanding of their market and their customers' demands," said Robert Anderson, partner at FTV Capital. "LoanPro solves the inefficiencies caused by manual processes and out-of-date legacy systems by providing a fully cloud-based solution with an API-first core architecture that enables real-time monitoring, management, and automation throughout the loan's lifespan. The platform's data approach provides a single source of truth for loan servicing data that is instantaneously available, resulting in significant efficiencies for lenders of all types."

Robert Anderson, who spearheaded the investment for FTV Capital, will join LoanPro's board of directors as part of the transaction.


FTV Capital was advised by Gibson, Dunn & Crutcher LLP.

About LoanPro
LoanPro is the only true API-based mid-market and enterprise Loan Management Software provider in the US/Canadian market. LoanPro is designed to streamline loan servicing and loan collections workflows and is hosted on Amazon Web Services (AWS) "the cloud." LoanPro is trusted by over 600 lenders who benefit from enhanced transparency, control, flexibility, real-time database access, computation accuracy, and scalability on a PCI, SOC I, and SOC II certified platform.

About FTV Capital
FTV Capital is a growth equity investment firm that has raised approximately $4 billion in capital to invest in high-growth firms that provide a variety of creative solutions in three industries: enterprise technology and services, financial services, and payments and transaction processing. FTV's seasoned staff applies domain expertise and a track record of success in each of these areas to assist motivated management teams in accelerating growth. FTV also gives companies access to its Global Partner Network®, a collection of the world's leading enterprises and executives who have been assisting FTV portfolio companies for over two decades. FTV Capital, founded in 1998, has invested in over 120 portfolio companies, including Docupace, Derivative Path, EBANX, Enfusion, Sunlight Financial, and Vagaro, and has successfully exited companies such as InvestCloud (recapitalized), Strata Fund Solutions (acquired by Alter Domus), and WorldFirst (acquired by Ant Financial). FTV is headquartered in San Francisco, New York, and Connecticut.

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Spotlight

Financial advisors continue to feel the effects of a shift that will change the nature of their business, possibly forever. Millions of Americans are about to retire, and millions more have begun to realize that planning for retirement is a priority and a challenge that may require the services of an advisor. The shift toward retirement income planning presents tremendous challenges and opportunities for advisors. Providing retirement income planning services is time consuming, and retired clients tend to generate less revenue from commissions as they are drawing down assets and shifting to more conservative portfolios. On the other hand, the opportunities are tangible. Clients are clearly looking for retirement income planning services, and they may be willing to change advisors to get them. Now is the time for advisors to offer retirement related planning products and services – before someone else does.

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