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Israel’s Viola Credit secures $2b fund for fintech lending
Viola Credit has closed its third credit fund at US$2 billion, beating its initial US$1.5 billion target.
The Israel-based firm, which provides debt financing to technology and fintech companies, said it plans to support 35 to 40 companies with credit ranging from US$25 million to US$300 million per deal.
Viola Credit expects a similar share of Israeli companies in the new fund as in its previous fund, where about a quarter of the portfolio was local.
Viola Credit is part of the Viola Group, which manages over US$6.5 billion in assets.
The firm has completed more than US$3 billion in asset-backed credit transactions to date and currently manages US$4 billion in assets.
🔗 Source: Calcalist
🧠 Food for thought
Implications, context, and why it matters.
Viola Credit raises $2B as private credit matures
- Oversubscribed to $2B from a $1.5B goal with demand by pension funds, insurance companies and family offices 1.
- Conor Sheehy joins from HSBC Innovation Bank to lead asset-backed lending (ABL) Europe, while Michael Chen will run U.S. investments in that strategy 1.
- Deals span $25 million to $300 million per transaction 1. ABL backs sponsor-backed originators from early stages 2, plugging gaps at banks that reject fintech startups for lacking tangible collateral 3.
Operators can press a crowded fintech lending market for better terms
- Plans cover 35–40 firms across Small and Medium-sized Enterprises (SME) finance, payments, consumer credit and embedded lending 1. It means financing integrated into non-financial platforms. Teams can pit lenders to win friendlier covenants and pricing.
- Venture debt slowed in late 2023 after Silicon Valley Bank’s collapse and higher rates 4, so alternative lenders moved in with flexible terms at steeper costs 4.
- Founders with €250k–€500k Annual Recurring Revenue (ARR) and product-market fit should approach specialized credit funds soon 3. Revenue-based financing is rising for Software-as-a-Service (SaaS) 4, while ABL from Viola Credit can offer $25 million–$300 million deals for firms with recurring revenue or loan portfolios 1. Some venture debt asks for €1 million+ ARR 3.
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