Israel’s Viola Credit secures $2b fund for fintech lending | Startup Story

Viola Credit has closed its third Asset-Based Lending (ABL) fund at $2 billion, outpacing its original $1.5 billion goal and cementing one of the largest dedicated fintech lending vehicles worldwide. The new fund underscores growing institutional appetite for private credit and will provide flexible capital to technology and fintech lenders reshaping financial services.

How the $2 billion will be deployed

The fund will offer tailored credit facilities to roughly 30–40 fintech and tech-enabled lenders primarily across the U.S., U.K., Western Europe, and Australia. Typical facilities will range from $25 million to $300 million per company, targeting sectors including:

• SME finance
• Consumer lending
• Payments
• Buy-now-pay-later (BNPL)
• Embedded finance

The strategy aims to support capital-intensive lending businesses with scalable platforms, enabling them to expand loan books and launch new products while maintaining strong risk controls.

Strong institutional demand for private credit

The oversubscribed raise reflects robust interest from global institutions—such as pension funds, insurers, and family offices—seeking diversified exposure to asset-backed opportunities. As asset-based lending becomes more integral to the innovation economy, this commitment highlights confidence in structured credit solutions that emphasize collateral and disciplined underwriting.

Track record and investment approach

Viola Credit builds on a track record of more than $3 billion in completed asset-based lending transactions. Its mandate spans fintech, proptech, and insurtech, with a focus on companies modernizing traditional finance through data-driven models and technology-enabled distribution.

The firm’s underwriting concentrates on resilient collateral pools—ranging from SME loans and consumer receivables to music royalties and embedded lending assets—while avoiding speculative exposures and complex, opaque products. The approach prioritizes long-term, sustainable lending partnerships.

Scaling capacity through strategic initiatives

This fund follows a first close of $600 million in April 2024 and a $500 million strategic joint venture announced in May 2025 with Cadma Capital Partners, an affiliate of Apollo Global Management. Together, these steps enhance the firm’s ability to provide larger and more flexible facilities to lenders across key Western markets.

Fueling fintech growth amid tighter conditions

As traditional credit conditions tighten and regulatory requirements evolve, fintechs increasingly turn to asset-based financing to support growth. Collateralized structures offer a capital-efficient way to expand responsibly—mitigating risk while enabling lenders to serve more customers and launch new credit products.

In sectors where competition is intense, such as BNPL, consumer credit, and SME financing, access to reliable, scalable funding is pivotal. The new fund directly addresses this need, helping companies accelerate product development, improve unit economics, and broaden geographic reach.

A focus on disciplined execution

Viola Credit’s leadership emphasizes pairing growth capital with rigorous risk management. The firm prioritizes companies with clear paths to profitability, sound portfolio performance, and robust data capabilities. This conservative, collateral-first approach is designed to withstand interest rate volatility while supporting real-economy lending to businesses and consumers.

Part of Israel’s broader technology investment engine

As part of Viola Group—Israel’s largest and most active technology investment platform—Viola Credit contributes to a comprehensive ecosystem that supports companies from early-stage through growth. With more than $6 billion in assets under management across its investment arms, the group backs founders and operators driving innovation in multiple sectors, including financial technology.

The fund’s geographic focus spans developed fintech hubs in North America, Europe, and Australia while continuing to support promising Israeli companies. This balance aims to amplify Israeli fintech expertise on the global stage and deepen cross-border market access.

Outlook: Accelerating inclusive, efficient credit

With $2 billion of deployable capital, Viola Credit is positioned to meaningfully influence the next chapter of fintech lending. The fund will back lenders that improve access to credit for underserved segments, streamline payments and embedded finance, and modernize the infrastructure of financial services. For institutional investors, the close signals a continued embrace of private credit and ABL strategies as durable sources of return.

In sum, Viola Credit’s third ABL fund marks a milestone for fintech financing—expanding the availability of growth capital, strengthening market resilience, and helping leading lenders scale responsibly in an evolving financial landscape.