Viola Credit closes $2 billion fund to fuel fintech growth

Viola Credit, a debt fund specializing in customized credit solutions for technology and fintech companies, announced the final closing of its third credit fund at $2 billion, surpassing its original target of $1.5 billion.

Ruthi Furman, managing partner at the fund, told Calcalist, "This fund focuses on credit for fintech companies. We expect to execute approximately 35 to 40 transactions, with amounts provided to each company ranging from $25 million to $300 million."

Viola Credit partners.

Furman explained the fund's role, saying, "The fund will support fintech companies by providing the credit they extend to their customers. We can help companies build products and act as a partner in their growth. We have several companies in later stages, so we know them and have confidence in their prospects. We haven’t backed crypto and do not engage in exotic lending."

"Given the current interest rate environment, many fintech companies struggle to generate significant profits on the credit they provide," she added. "We don’t lend to companies that are unlikely to succeed. When we provide capital, we carefully assess the company’s potential. In the previous fund, roughly a quarter of the portfolio was Israeli companies, and we expect to maintain a similar allocation."

Furman emphasized that the fund does not compete with traditional banks or other institutions that do not provide credit to fintech companies. She noted, "Fintech investment has fluctuated over time. It was a hot sector, then declined, and now it is growing again. AI will also increasingly penetrate all fintech platforms."

In September 2024, Viola Credit announced a strategic $500 million collaboration with Cadma Capital Partners, part of Apollo Global Management. This partnership reflects the continued expansion of Viola Credit’s asset-backed lending operations in Western markets.

The third fund attracted strong demand from institutional and private investors worldwide, including pension funds, insurance companies, and investment houses. In Israel, Viola Credit partnered with Value Advanced Investments, which raised capital for the fund from qualified private investors.

Ido Vigdor, managing partner at Viola Credit, said, "“This milestone reflects the continued interest from institutional investors in the private credit market and the growing role of asset-based lending within it. In a dynamic fundraising environment, the new capital enables us to continue serving as a strategic partner to tech-enabled and FinTech lenders - supporting them as they expand their originations and strengthen their access to efficient capital."

Viola Credit is part of the Viola Group, which manages over $6.5 billion in assets. Since its inception, Viola Credit has completed asset-backed credit transactions exceeding $3 billion and currently manages $4 billion in assets.