Mercury Financial Has Closed a $200 Million Debt Facility to Drive Growth of its Credit Card Business for the Middle-Class
Mercury® Financial (“Mercury”) today announced the closing of a $200 million debt facility from client funds managed by Neuberger Berman.
Mercury® Financial (“Mercury”) today announced the closing of a $200 million debt facility from client funds managed by Neuberger Berman. Mercury will use the funds to expand its credit card business and continue its mission of providing middle-class Americans responsible financial products to improve their lives.
“By analyzing financial data the right way, we can better assess risk and help more qualified Americans better manage their credit,” said James Peterson, Mercury Financial CEO. “We are committed to improving the financial lives of our customers. Neuberger Berman believes in our mission and their partnership will help us reach more underserved Americans, the bedrock of the US economy.”
Mercury caters to 36 million middle-class Americans who are often overlooked by banks. Using proprietary data, the Company’s unique business model leverages over 100 million data points to identify, underwrite and delight its customers with a prime credit card experience. Its digital toolset is built around its patent pending oculus mobile app, which allows Mercury to engage better with its customers and encourage healthy credit use in a fun and intuitive way. Mercury Financial will use the proceeds of the transaction to originate additional credit card accounts, fund growth of its existing cardmember relationships, and innovate new capabilities to further enhance its customer experience.
“We see a massive opportunity for Mercury to reach our near-prime target market, which so many banks and non-bank lenders ignore,” said Jason Whiting, Mercury Financial CFO. “Regulatory limitations have discouraged banks from approaching this segment, while subprime lenders have traditionally relied on high fee products which often results in continued financial stress. We pride ourselves on being our customers’ bridge to a better credit experience and making a difference in the lives of our 1.5+ million cardmembers.”
“Mercury is a great company with a terrific customer base,” said Zhengyuan Lu at Neuberger Berman. “We are pleased to be a key capital partner for them as they grow and deliver value to their cardmembers.”
“Mercury Financial is driving expanded access to credit and financial inclusion to many underserved Americans,” said Aneek Mamik, Partner at Värde Partners. Värde has been the lead equity sponsor of the business since its founding in 2017.
To learn more about Mercury Financial, please visit www.MercuryFinancial.com.
About Mercury Financial
Mercury® Financial LLC is a mission-driven fintech organization that expands financial inclusion, helping over 1.5 million hardworking Americans build better credit and better lives. Founded in 2017 and backed by advanced technology, the privately held company provides customers access to more than $6 billion in credit. Mercury is backed by Värde Partners, a leading global alternative investment firm specializing in credit and credit-related assets. Mercury offers credit card products issued by First Bank & Trust, Brookings, SD, pursuant to licenses from Visa® USA Incorporated and Mastercard® International Incorporated. The Company is headquartered in Austin, TX, and has an office location in Wilmington, DE. For more information, please visit www.MercuryFinancial.com and follow Mercury® Financial on Facebook, Instagram, LinkedIn, and Twitter.
About Neuberger Berman
Neuberger Berman, founded in 1939, is a private, independent, employee-owned investment manager. The firm manages a range of strategies—including equity, fixed income, quantitative and multi-asset class, private equity, real estate, and hedge funds—on behalf of institutions, advisors and individual investors globally. Neuberger Berman’s investment philosophy is founded on active management, engaged ownership and fundamental research, including industry-leading research into material environmental, social and governance factors. Neuberger Berman is a PRI Leader, a designation awarded to fewer than 1% of investment firms. With offices in 26 countries, the firm’s diverse team has over 2,750 professionals. For nine consecutive years, Neuberger Berman has been named first or second in Pensions & Investments Best Places to Work in Money Management survey (among those with 1,000 employees or more). The firm manages $443 billion in client assets as of June 30, 2023. For more information, please visit www.nb.com and www.nb.com/en/us/esg/philosophy.
About Värde Partners
Värde Partners is a leading global alternative investment firm specializing in credit and credit-related assets. Founded in 1993, the firm has invested through multiple credit cycles, building on its roots in special situations and distressed to invest more than $95 billion across the credit quality and liquidity spectrum in both public and private markets. Värde currently manages over $13 billion in assets with teams in North America, Europe, and Asia Pacific focused on Corporate & Traded Credit, Real Estate, and Financial Services. For more information, please visit www.varde.com.
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