Apollo and MUFG back fintech firm Liquidity Group
Apollo Global Management Inc. APO,
and Mitsubishi UFJ Financial Group Inc. (MUFG) MUFG,
On Tuesday, they announced they had committed $775 million to Liquidity Group, an artificial intelligence technology specialist, to make funding decisions for loans to early-stage tech companies. Apollo plans to provide $425 million to help Liquidity grow its lending business while MUFG has committed $300 million to a joint venture debt fund called Mars Growth Capital for pre-Unicorn companies. Additionally, Apollo, MUFG Bank and Spark Capital invested an additional $50 million in the form of a SAFE note. Liquidity Group’s assets under management will grow to over $2 billion through the investments. Liquidity Group’s analytics system performs due diligence within 72 hours, compared to an industry standard of six to 12 weeks, while achieving default rates five times the industry average, the company said. . Tel Aviv-based Liquidity Group describes itself as the leading predictive modeling platform for technology and an asset management institute funding early-stage startups around the world. The company was co-founded by its CEO Ron Daniel, who is also CEO of Mars Growth Capital.