back Back

Mission Lane raises $150m in redeemable preferred equity

By Edlyn Cardoza

October 27, 2021

  • FinTech
  • Honeydue
  • Kroll Bond Rating Agency
Share

Mission Lane, Oaktree Capital Management, USAMission Lane, a purpose-driven financial technology company, recently announced the closing of its debut asset backed securitization and of $150 million in redeemable preferred equity in a series led by funds managed by Oaktree Capital Management, L.P., an existing investor in the company, and joined by Invus, QED Investors, and LL Funds.

In the securitization transaction, which was meaningfully oversubscribed, Mission Lane sold $320 million of notes in three classes, all of which were rated by Kroll Bond Rating Agency. The transaction represents the first step for Mission Lane in becoming a programmatic issuer in the securitization market.

Mission Lane provides high quality, transparent and data-driven products and experiences for people trying to build or rebuild their credit and improve their financial lives. Currently offering a variety of market-leading credit cards and personal financial management tools, the company will utilize the additional debt and equity funding to continue its rapid growth and develop new digital banking and lending products, while optimizing its cost of capital.

“Since launching as a standalone company over two years ago we have demonstrated that providing innovative products and a superior digital experience can deliver success in our target market,” said Shane Holdaway, Chief Executive Officer of Mission Lane. “We welcome the robust response and oversubscription our initial securitization transaction received from a broad group of sophisticated investors. Most of all, we’re pleased that we can utilize this tool to lower our cost of capital and in turn serve more customers with transparent, reasonably priced financial solutions that improve their lives and put them on a path to financial empowerment. Further, by raising additional equity capital from our partners such as Oaktree we can invest further in expanding our product suite and our team, enabling us to accelerate our robust growth trajectory.”

Earlier this year, Mission Lane announced it added its one millionth customer to its market-leading credit card franchise. The company achieved over 100% revenue growth in 2020 and is on pace to double revenue again in 2021 as it works to expand its debit and digital banking offerings. In May of this year, the firm announced it had acquired Honeydue, a financial technology company providing digital applications and banking services to help consumers manage their finances and develop stronger financial literacy and habits.

Brian Laibow, Managing Director and Co-Head of North America for Oaktree’s Global Opportunities strategy, said, “Mission Lane has proven its ability to thrive serving a customer-base that other fintech companies and traditional financial institutions have been unable to reach. Its deep expertise in data science and laser focus on solving customer problems has allowed it to secure high levels of consumer loyalty and establish a competitive advantage. We’re proud to work with Shane and the team to support the company’s continued growth.”

Previous Article

October 27, 2021

Kodak Alaris and Emmedi to provide banks with new check processing solution

Read More
Next Article

October 27, 2021

Mogo launches the world’s first climate-positive Bitcoin

Read More










IBSi Daily News Analysis

FinTech, future, trends

December 08, 2022

FinTech

Here’s how the FinTech landscape looks like for 2023

Read More

IBSi FinTech Journal

  • Most trusted FinTech journal since 1991
  • Digital monthly issue
  • 60+ pages of research, analysis, interviews, opinions, and rankings
  • Global coverage
Subscribe Now

Other Related News

Today

C6 Bank selects Thought Machine’s Vault Core to power the innovation of financial services

Read More

December 08, 2022

Swiss Digital Bank Alpian goes live on Temenos Banking Cloud

Read More

December 08, 2022

bondIT raises $14m in new investment round led by BNY Mellon

Read More

Related Reports

Sales League Table Report 2022

£1,500.00 / year

Know More
Global Digital Banking Vendor & Landscape Report Q3 2022

£1,500.00 / year

Know More
Wealth Management & Private Banking Systems Report Q3 2022

£1,500.00 / year

Know More
Global Transaction Banking Vendors and Landscape Report Q3 2022

£1,500.00 / year

Know More
Treasury & Capital Markets Systems Report Q3 2022

£1,500.00 / year

Know More

IBSi Sales League Table

The industry acknowledged barometer of global banking technology vendor performance!
Get your copy now!
close-link
Get your copy now! IBSi Sales League Table 2022