We’re excited to announce that IOU Financial has agreed to be acquired by Neuberger Berman! This acquisition reflects a positive outcome for Fintech Ventures Fund and IOU’s other shareholders, as it comes at a significant premium to the company’s last publicly reported valuation.
Going forward, Fintech Ventures Fund will retain an ownership position and a seat on IOU’s Board of Directors. Please join us in congratulating the team at IOU Financial!
More information on the transaction can be found in the following press release.
Fintech Ventures Fund’s Involvement with IOU:
Fintech Ventures Fund first invested in IOU Fiancial in 2016, and we have made 3 follow-on investments in the company (leading 2 rounds of financing). Our Fund’s General Partners have had active involvement with IOU, having held Board Director roles since 2016 and making introductions to the company’s CFO and VP of Sales.
Since Fintech Ventures Fund’s first involvement, IOU has grown to over 100 employees and originated over $1 billion in loans to small businesses. The company has also secured financing from leading institutional investors, including Apollo Global Management, Credit Suisse, and Neuberger Berman.
About IOU Financial:
IOU Financial Inc. is a wholesale lender that provides quick and easy access to growth capital to small businesses through a network of preferred brokers across the US and Canada. Built on its proprietary IOU360 technology platform that connects underwriters, merchants and brokers in real time, IOU Financial has become a trusted alternative to banks by originating over US$1 billion in loans to fund small business growth since 2009. IOU was named one of the 50 Best Places to Work in Fintech for 2022 by American Banker and trades on the TSX-V under the symbol "IOU," and on the US OTC markets as "IOUFF." To learn more about IOU Financial's corporate history, and financial products, please visit www.IOUFinancial.com.
About Neuberger Berman:
Neuberger Berman is a diversified asset manager with over $430B AUM and dedicated fintech/specialty finance investment verticals. Nueberger’s other publicly disclosed fintech portfolio companies include Katapult, Prosper Marketplace, and Sunlight Financial. Neuberger first made a strategic debt and equity investment in IOU in November 2020 and has been an integral partner in the company’s success over the past several years.
Press Coverage:
Canadian Lawyer - “Davies, Blakes, Stikeman Elliott, McMillan assist sale of Montreal-based IOU Financial”
MarketWatch - “IOU Financial Agrees to be Sold to Group of Funds”
Pe Hub - “IOU Financial to be acquired by Neuberger, Palos and Fintech”
