MUFG Bank to invest another $250 million in Liquidity Group
Japanese banking giant MUFG Bank is investing an additional $250 million in Israeli-founded Liquidity Group.
Founded in 2018, Tel-Aviv-based Liquidity is a provider of unlimited unsecured, non-recourse, no dilution growth capital. The company was founded by Ron Daniel, who also serves as the CEO. Meitav Dash, MUFG and Spark are all partners in the company.
Liquidity announced in May of this year that it has signed an agreement to set up a massive $2 billion investment fund in partnership with MUFG Bank and American venture capital firm Spark Capital.
MUFG invested $1.25 billion of the initial sum and has now added another $250 million.
The new funding is set to be used to provide additional credit lines to tech growth companies. Over September and October, Liquidity provided credit of over $500 million to unicorns of the likes of eToro, Eruditus, SumUp, Infra.Market and others, according to the company.
"Liquidity has set itself the target of allowing deserving companies to continue and grow at an accelerated pace even at a time when global markets are fearful and halting activity, and in periods when funding slows significantly," said Daniel.
Liquidity Group announced in April that it had entered into agreements with respect to approximately $775 million in capital commitments in the first three months of 2022, led by funds and entities managed by affiliates of Apollo.
Liquidity is a credit-oriented fintech platform that invests, syndicates and automates growth and middle market lending for businesses around the world, providing capital mainly to later-stage technology companies. MUFG’s core banking subsidiary, MUFG Bank, is a key strategic capital partner to Liquidity, having invested equity venture capital in the business as well as formed multiple joint lending ventures.