Centerbridge is investing 150 million euros in the German credit marketplace Auxmoney.

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Auxmoney has announced in a round led by Centerbridge Partners that it will raise €150 million in growth capital.
Centerbridge will purchase additional shares from existing shareholders to become a majority shareholder.
Auxmoney has grown 20 times in loan disbursements over the past five years.

The German-based company Auxmoney has announced the raising of €150 million in growth capital in a round led by Centerbridge Partners. The transaction is considered to be the largest Fintech fundraising in the eurozone in 2020.

In addition to the current financing, private equity firm Centerbridge Partners will also acquire the additional shares from Auxmoney’s existing shareholders and is expected to become the majority shareholder. Existing venture capital investors such as Union Square Ventures, Foundation Capital and Index Ventures will remain invested in Auxmoney.

According to Auxmoney’s press release, the company has experienced robust growth in loan disbursements, which have increased more than twenty-fold over the past five fiscal years. The company achieved this growth through advanced technological innovations along the credit value chain and effective digital risk assessment methods.

“The corona crisis has further accelerated the trend towards digital credit. Due to this dynamic, we will see a consolidation of the market in favor of the technology leaders. We are well prepared for this,” – Raffael Johnen, CEO and founding partner of Auxmoney

New York-based private investment management firm Centerbridge Partners is known for taking a majority stake in its portfolio companies. Centerbridge’s private equity platform currently has approximately $14 billion in capital commitments to three closed-end funds.

Maximilian Rinke, Centerbridge’s Managing Director, commented – “…The credit market is still characterized by traditional scoring methods and manual processes. By automating the processes, auxmoney can offer more people easy and convenient access to credit”.

In 2007, in a similar sector to Auxmoney, Centerbridge, in partnership with management, acquired the business services company Green Tree. Green Tree was involved in the management of credit-sensitive consumer loans. Later in 2011, Centerbridge Partners sold Green Tree to Walter Investment Management (currently Ditech Holding Corporation) in a deal valued at approximately $1.065 billion.

The completion of Centerbridge’s investment in Auxmoney – the investment deal is subject to antitrust approval.

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