Mitsubishi Group Invests Additional $120M in a Liquidity Group Fund - Mars Growth, as it Ramps Up Growth Financing in ASIA PAC Tech Companies, Reaching $220M Direct MUFG Investment in Liquidity Within the Last 10 Months
September 01 2021 - 5:30AM
Business Wire
Mitsubishi Group (MUFG) the second largest banking and finance
group in the world has injected another $120 million investment
into the Mars Growth fund, a 50/50 joint venture owned by MUFG and
Liquidity Capital. MUFG has a broader strategic relationship with
Liquidity and this latest investment represents their cumulative
investment of $220 million to date.
Mars Growth Capital provides debt financing solutions to
technology companies in Asia Pacific and Europe. Since its
inception one year ago, the fund has recorded exceptional
performance through ten transactions to the value of $80 million,
executed across Asia, Australia and Europe, with demand exceeding
$2 billion during this period.
Through its strategic collaboration with MUFG, Liquidity is
focused on revolutionizing the credit underwriting process for the
business sector. Recognizing the challenges for high potential
companies to secure non-dilutive capital from traditional financial
institutions, Liquidity developed DYNAMiCS, a world-first, machine
learning platform that can perform fast and thorough, data-driven
due diligence on companies to assess their performance and growth
potential.
DYNAMiCS uses algorithms to accurately predict future revenues,
cash balances and other relevant financial covenants unique to
technology business. Each of Liquidity’s four funds, including Mars
Growth Fund, use the platform to inform their investment decision
making, oftentimes in a process that takes less than 24-hours to
complete.
Liquidity Group has provided over $750 million during the last
year to over 50 growth companies across USA, Asia Pacific, Europe
and the Middle East, including top unicorns such as eToro, Homer,
Resident, Infinidat, Acronis, Infra.Market, and others. Its
financing ranges from $5 million to $100 million, and is committed
to 24-hour due diligence using its first of a kind platform -
DYNAMiCS.
Ron Daniel, Liquidity CEO, said: “MUFG's ongoing investment in
our funds is a vote of confidence in our technology, capabilities
and potential. Mars Growth Capital’s performance to date is a
reflection of the strength of our methodology of combining our
team’s professional investing expertise with our bespoke DYNAMiCS
technology solution. We are excited to continue our ongoing
partnership with MUFG, who shares our ethos to support innovative,
technology-driven companies across key market segments.”
Rio Hiroshima, who manages Mars Growth Capital’s operations on
behalf of MUFG, said, “Since launching the fund just one year ago,
we have quickly positioned ourselves as the market leader in growth
financing for technology companies across the APAC and EMEA
regions. Market demand, coupled with our strong investment
performance has enabled us to grow rapidly and increase the value
of the fund to $200 million. We are excited to continue our
partnership with MUFG as we continue on the same dizzying
trajectory into 2022”.
Yaron Primovich, the fund manager on behalf of Liquidity said:
"Our partners at MUFG believe in our value proposition, and share
our ambitions to be the global leader in growth financing. We hold
a unique position in the marketplace because our underwriting
platform acts as a data-driven oracle to identify and assess the
potential of prospect companies. DYNAMiCS can cut through masses of
information to analyse the strength of different business models,
end customer behaviours and financial situations, arming us with
insights to determine a company's ability to meet future debt
repayments.”
"In a post Covid-world, businesses across the globe are on the
cusp of even greater levels of innovation and expansion, further
fuelling companies' appetite for growth and debt without dilution.
We are excited to play a crucial role in helping these companies
optimise on this opportunity”.
In addition, Mars Growth Capital has registered high levels of
demand from hundreds of companies, in less than one year since its
formation.
Notes to Editor
About Liquidity
Liquidity was established in 2018 by Ron Daniel, Yaron Sela and
Oron Maymon. Liquidity manages $800 million in several funds
worldwide. Among the partners in the company are Spark Capital,
Meitav Dash and the Mitsubishi Banking Corporation. The company is
considered a world leader in business credit management for growth
companies using the machine learning technology it has developed.
www.liquiditycap.com
Mars Growth is a joint venture between Liquidity Capital and
MUFG that offers tech startups a one-of-a-kind funding alternative,
enabling them to double down on their hyper-growth without giving
up equity. Its trajectory-based funding model allows them to work
with startups and growth-stage companies side-by-side, taking on
financial risk. Part of the Liquidity funds arm, Mars Growth
invests in SaaS providers that demonstrate over $3M in ARR and 30%
year-over-year growth, with an average ticket size of
$3M-$100M.
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Alex Bayliss liquiditycapitaluk@fullyvested.com
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