Nordic Capital to combine Liberis and Qred in SMB financing push

By Milan Rojan

Nordic Capital has agreed to acquire London-based embedded finance provider Liberis and further invest in Swedish digital business bank Qred, in a transaction that will create a combined global platform focused on small and medium-sized business (SMB) financing.

The firms have said the merger is designed to bring together two complementary business models: Qred’s regulated banking and lending platform, and Liberis’ embedded finance network. Upon completion, expected later this year, Nordic Capital XI will become the majority shareholder of the combined company, while Nordic Capital Evolution I will retain an interest, and Verdane will join as a co-investor.

Emil Sunvisson, Founder & CEO, Qred, said, “Qred was built on a simple belief that SMBs deserve better access to financing and financial services. Over the last five years, together with Nordic Capital, we have transformed the company into a regulated European bank serving tens of thousands of entrepreneurs across multiple markets.”

The deal has been positioned against a wider financing gap facing SMBs, with both firms saying traditional lending has continued to leave many smaller businesses underserved. Qred, founded in Stockholm in 2015, has grown into a digital SMB banking platform with a full banking licence and a deposit-funded balance sheet across Northern Europe. Liberis, founded in 2007, has enabled more than 70,000 small businesses to access funding through more than 30 partners across Europe, the UK and North America.

Rob Fairfield, CEO, Liberis, said, “By embedding financial products into the platforms businesses use every day, we’ve helped unlock growth at scale. Joining forces with Qred and Nordic Capital marks an exciting new chapter, one that will allow us to accelerate our mission, expand our product offering, and support even more entrepreneurs around the world.”

The combined business is expected to offer term loans, revenue-based financing, working capital lines, cards and other products through both direct and embedded channels. Qred’s AI-powered credit platform has also been highlighted as a core component of the future group.

The transaction is subject to regulatory approvals and other closing conditions. Until completion, both businesses will continue to operate independently.