Liquidity, a growth-stage debt financier, raises $40M, launches $250M Europe debt fund

Last year we covered how late-stage tech backer Liquidity Group had raised $775 million for its fintech platform from Apollo (private equity) and MUFG (a Japanese bank).

Liquidity is part tech platform and part lender, using its technology to make decisions on deploying debt facilities and other financial solutions from $5 million to $100 million relatively quickly compared to more ponderous processes.

It’s now raised another $40 million in equity investment, again from MUFG, giving it what it claims is a $1.4 billion valuation.

Liquidity and MUFG are also creating a joint venture called “Mars Growth Capital Europe” a $250 million debt fund to provide growth financing specifically to late-stage European tech companies and mid-market companies, as well as a range of other financial services.

In a statement, Ron Daniel, CEO and co-founder of Liquidity Group, said: “We’re proud to deepen and expand Liquidity Group’s partnership with MUFG, who share our vision of using machine learning technology to enhance and accelerate the decision-making process of deploying large debt facilities and equity investments.”

The growth financing market has exploded in recent years with players like Wayflyer and Uncapped appearing, but whether they will maintain its bull-run is up for grabs in a market with much higher interest rates.